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Retail Information

Download the 2020 Retail Market Survey Here

The Retail Market Survey is an annual publication produced by Burns Commercial Properties. The Survey reviews the availability and demand all retail real estate in Tyler, TX

Retail owners interested in acquiring operating space will find the survey an excellent tool for comparative research of lease rates and options. The survey can be downloaded by clicking the document on the left or can be viewed at the Burns Commercial Properties.


 

OVERVIEW

The 2020 version of the annual Retail Market Survey contains data gathered from owners and/or property managers of eighty retail centers in the Tyler market. The bulk of the data was obtained during the onset of the corona virus. The information contained in the Survey provides a snapshot view of the state of the market as of the month of April, 2020.
 
The retail sector of the commercial real estate market will no doubt bear the brunt of the effects of the unprecedented economic slowdown caused by the lockdown put in place in an effort to control the spread of the virus. With the exception of a few types of retailers, such as grocers and drugstores, retail stores are experiencing significant decreases in traffic and revenue. Many shops are closed and shoppers are staying at home. We won’t know how much effect this event will have on vacancy and lease rates for a few months, but it is safe to assume that the results will be negative.
 
Many tenants are requesting rent concessions, and landlords are wrestling with the issue while they still have to make mortgage payments, pay for taxes, insurance, and repairs. Both landlords and tenants are hurting.
 
The Survey indicates that the vacancy rate for the centers surveyed stands at 15%, which is practically unchanged from the 16% rate in 2019. The average asking lease rate stands at $17.39 per square foot, just below last year’s $17.47 rate.
 
The total square footage of the centers surveyed rose to 3,604,797, from 3,563,435 square feet in last year’s survey. The total supply of vacant space is 538,381 square feet, which is significantly higher than the 2019 number, which stood at 390,459 square feet.
 
Last year thirty properties reported zero vacancy. This year that number dropped to nineteen. In 2019, fortyfour centers experienced an occupancy level of ninety percent or greater, and this year the number dropped to thirty-four.
 
Undoubtedly, the retail market is undergoing a great deal of stress. Retailers have been battling the effects of internet shopping for several years, and the shutdowns caused by the corona virus are accelerating the number of challenges they are facing. At some point the virus will be contained and life will become more normal. It will be interesting to observe what the long term effects will be on the retail sector. Right now, it is difficult to find much in the way of positive news, but hopefully the trend will be reserved in a relatively short period of time.
 
Thanks to all the property owners and managers who contributed the data necessary to complete this report. A special thanks to Rebecca Hitt of the Burns Commercial Properties staff for her work in obtaining and compiling the information.
 
Taylor Burns

 

RETAIL COACH

Primary Retail Trade Area Demographic Profile January 2018

Community Demographic Profile January 2018