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Office Market Survey

Download the 2019 Office Market Survery Here

The Office Market Survey is an annual publication produced by Burns Commercial Properties in September. The Survey assesses the total Class A, B and C office space availability and occupancy in Tyler, TX.

Companies interested in acquiring office space will find the survey an excellent tool for comparative research of lease rates and options. The survey can be downloaded by clicking the link or picture to the left or can be viewed at the Burns Commercial Properties.

 

 

OVERVIEW

The annual Burns Commercial Properties Office Market Survey shows some promising signs for
the Tyler office sector.
 
After the overall occupancy rate dropped below eighty percent in 2017 for the first time in the
history of the survey (which was initiated in 2002), and went even lower in 2018, hitting 78.6%,
the 2019 results show an improvement in the market.
 
This year’s data was gathered from obtaining occupancy levels and asking rates on sixty one
properties, containing a total of 2,262,969 square feet of space. The results indicate that there
is currently 372,637 square feet of space available, down by 94,430 square feet from last year.
The result is an occupancy rate of 82.58%.
 
The average lease rate being quoted by landlords is $16.89 per rentable square foot, up from
$15.86 in 2018. The asking rates range from $18.52 per square foot for Class A buildings to
$13.09 square foot for buildings classified as Class C.
 
The segment of the market which shows the most improvement is the Class B portion, in which
the occupancy rate moved from 85.6% to 90.5%. Both the Class A and Class C sectors have less
than eighty percent of their total space occupied. This carried over to the asking lease rates as
these were steady in the A and C markets, while Class B properties saw an increase of just over
five percent in lease rates.
 
While Landlords can garner hope that the office market is finally improving, Tenants still have a
wide range of choices as there is a significant amount of space available in the overall market,
particularly in downtown Tyler, where the occupancy rate is still below eighty percent. Buildings
in south Tyler are currently leased at a rate of 85.7%.
 
Thanks to all the building owners, property managers, and leasing agents who contributed the
data necessary to make this report a reality. Special thanks to Rebecca Hitt of the Burns
Commercial staff for assembling all the information.
 
Taylor Burns