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TYLER OFFICE MARKET SURVEY
September, 2016
Burns Commercial Properties has completed its annual survey of the Tyler office market and the results indicate that no dramatic changes have
taken place in this segment of the commercial real estate sector.
The survey consists of data compiled from fifty seven buildings which contain a total of 2,244,123 square feet. The overall occupancy rate for
the properties surveyed came in at 85.4%, one half of one percent better than the 2015 numbers.
Significantly, the average quoted rates for the properties, decreased by $0.12 per square foot, showing an average rate of $15.12. The rates are
quoted on a gross rent basis, in which the Landlord pays for all utilities, janitorial service, maintenance, taxes, and insurance. There is a total of
327,288 square feet of space currently available in the market.
The most pronounced change was found in the downtown office sector, which experienced a decline in occupancy from 80.7% to 78.3%. The
average asking rate in this portion of the market is $13.05 per square foot.
In the South Tyler market, the occupancy rate is 89.1%, a two percent improvement over last year. Rates were down slightly in this area, with
an average of $15.85 per square foot.
Class A buildings improved their occupancy levels slightly, ending at 87.1%. Rates were virtually unchanged, down to $19.98 per square foot
from $20.04 last year.
Class B buildings are 84.3% occupied, up from 83.1% last year. Rates dropped from $14.25 to $13.93 per square foot.
Class C buildings fared worse, dropping by 4.8% to an occupancy level of 84.0% overall. Rates were virtually unchanged at $12.50 per square
foot.
The office market has been negatively affected by the slowdown in the energy sector plus the increased use of technology, which makes it
possible to achieve the same output level with fewer employees, while allowing companies to place more workers per square foot. Additionally,
more people are working from home which is also a result of technological changes.
Thanks to the building owners, managers, and leasing agents who supplied the information used to complete this report, and to Peggie Jenkins
for compiling it.
Taylor Burns
Table 1
TYLER OFFICE MARKET SURVEY
SEPTEMBER 2016
Total Office Market Statistics
Number of Buildings: 57
Total Square Feet: 2,244,123
Total Vacant Square Feet: 327,288
Overall Occupancy Rate: 85.4%
Average Annual Rental Rate Per SF: $15.12
Tyler CBD (Downtown) Office Market Statistics
Number of Buildings: 14
Total Square Feet: 760,945
Total Vacant Square Feet: 165,376
Occupancy Rate: 78.3%
Average Annual Rental Rate Per SF: $13.05
Tyler Suburban (South Tyler) Office Market Statistics
Number of Buildings: 43
Total Square Feet: 1,483,178
Total Vacant Square Feet: 161,912
Occupancy Rate: 89.1%
Average Annual Rental Rate Per SF: $15.85
Table 2
TYLER OFFICE MARKET SURVEY
SEPTEMBER 2016
Class A
Number of Buildings: 14
Total Square Feet: 885,837
Total Vacant Square Feet: 113,732
Occupancy Rate: 87.1%
Average Annual Rental Rate Per SF: $19.98
Class B
Number of Buildings: 33
Total Square Feet: 1,179,732
Total Vacant Square Feet: 185,100
Occupancy Rate: 84.3%
Average Annual Rental Rate Per SF: $13.93
Class C
Number of Buildings: 10
Total Square Feet: 178,554
Total Vacant Square Feet: 28,456
Occupancy Rate: 84.0%
Average Annual Rental Rate Per SF: $12.50
CITY: Tyler
MARKET: Central Business District (Downtown)
DATE: September, 2016 COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler CBD Office Market
First Place 187,060 12 91% 16,057 6,548 $16.00 - 10.8% $9.48 A Allen Bell
100 E. Ferguson Street $18.00 Allen Bell Property Svcs.
Crest Properties, Ltd. 903/595-2805
Plaza Tower 209,524 19 72% 60,597 11,086 $16.50 - 11.4% Base Yr. A Taylor Burns
110 N. College Avenue (incl 8,904 sf in basement) $17.00 Burns Commercial Properties
Genecov Group 903/534-1200
200 Broadway Center (KLTV BLDG) 54,904 4 62% 20,592 10,296 $13.00 N/A Base Yr. B Taylor Burns
105 W. Ferguson Street Burns Commercial Properties
TV-3, Inc. 903/534-1200
Tyler Office Center 17,000 2 71% 4,900 3,000 $10.50 N/A None B Art Mullan
120 S. Broadway Avenue Signature Management, Inc.
Individual 903/526-0880
United Heritage Bldg. 13,252 2 71% 3,900 1,492 $10.00 5.0% Base Yr. B Robert Means
522 S. Broadway Avenue Investment Real Estate Svcs.
Woldert Rentals, LLC 903/594-8880
People's Petroleum Building 76,305 15 74% 20,004 11,476 $16.00 16.0% Base Yr. B Andy Bergfeld
102 N. College Avenue Bergfeld Realty
People's Petroleum Bldg., LLC 903/592-1032
The Energy Center 41,560 3 85% 8,310 1,000 $12.00 N/A None C Martin Heines
719 W. Front Street Martin Heines Real Estate
Briarwood Group, Ltd. 903/593-2367
Fountain Square 29,484 2 90% 3,500 1,200 $11.00 N/A None C Martin Heines
401 E. Front Street Martin Heines Real Estate
Briarwood Group, Ltd. 903/593-2367
Blackstone Building 26,620 6 100% 0 0 $13.00 20.9% $6.76 B Allen Bell
315 N. Broadway Avenue Allen Bell Property Svcs.
Tyler Chamber of Commerce 903/595-2805
BURNS COMMERCIAL PROPERTIES 2016 OFFICE MARKET SURVEY, TYLER, TEXAS
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler CBD Office Market
122 South College Building 6,028 2 0% 6,028 6,028 $10.00 N/A None C Bill Whitehurst
122 S. College Avenue 903/595-0470
Whitehurst & Smith
Wadel-Connally 30,808 3 89% 3,328 3,740 $13.00 - 17.3% $5.26 B Allen Bell
112 E. Line Street $16.00 Allen Bell Property Svcs.
BSGJ1, LLC 903/595-2805
Austin Bank Building 35,841 12 86% 5,018 1,500 $12.00 N/A None C Martin Heines
305 S. Broadway Avenue Martin Heines Real Estate
Briarwood Group, Ltd 903/593-2367
210 South Broadway Building 13,357 2 50% 6,733 1,205 $13.50 15.0% Base Yr. B Andy Bergfeld
210 S. Broadway Avenue Bergfeld Realty
Broadway Rusty Nail, Ltd. 903/592-1032
320 South Broadway Avenue 19,202 2 67% 6,409 1,315 $13.50 5.0% Base Yr. B Andy Bergfeld
320 S. Broadway Avenue Bergfeld Realty
Metro Asset Management, LLC 903/592-1032
Totals For CBD: 760,945 78.3% 165,376 $13.05 (avg)
CITY: Tyler
MARKET: Suburban
DATE: September, 2016 COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
One American Center 113,708 7 88% 13,971 6,023 $19.00 12.6% Base Yr. A Taylor Burns
909 ESE Loop 323 Burns Commercial Properties
Mesa Loans of Athens, L.P. 903/534-1200
Two American Center 94,017 5 100% 0 0 $17.00 - 16.0% Base Yr. A Russell Patterson
821 ESE Loop 323 $19.00 Patterson Commercial Property
Aberfeldy, Ltd. 903/597-1800
Grande Centre 90,514 5 100% 0 0 $20.00 - 12.2% $7.35 A Taylor Burns
6101 S. Broadway Avenue $23.00 Burns Commercial Properties
David Lake 903/534-1200
Grande Plaza 57,500 1 90% 5,720 3,110 Negotiable N/A N/A B Brad Donley
212 Grande Blvd. Pyle Properties
Pyle Properties 903/509-8161
Heartland Financial Center 58,578 2 100% 0 0 Negotiable 15.0% Base Yr. A Brig North
501 Shelley Drive Heartland SIG
Hibbs Financial 903/266-5647
Woodgate Centre 95,007 4 86% 13,391 5,949 $16.00 13.2% Base Yr. B Glenn Eikner
1001 ESE Loop 323 Burns Commercial Properties
Woodgate Centre, LLC 903/534-1200
Paluxy Square 79,438 1 69% 24,578 5,091 $12.50 - N/A Base Yr. B Aaron Uncapher
3800 Paluxy Drive $14.50 Burns Commercial Properties
Genecov Group 903/534-1200
Commerce Square 73,165 1 83% 12,081 3,020 $11.10 N/A None B James Wynne, III
3334 SSW Loop 323 Commerce Square Corp.
Wynne Interests 903/509-9795
Oak Plaza Building 59,610 2 80% 11,795 5,157 $16.00 13.5% $6.04 B Dan Spivey
3300, 3304 & 3310 S. Broadway Roosth Properties
Roosth Properties 903/593-8333
Shiloh Office Park 22,131 1 100% 0 0 $13.50 N/A Base Yr. B Russell Patterson
921 Shiloh Road Net Elec/Janitorial Patterson Commercial Property
Aberfeldy, Ltd. 903/597-1800
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
Independence Center 54,337 4 93% 4,031 2,000 $13.50 15.0% Base Yr. B Don Simmons
100 Independence Place Simmons Real Estate
Genecov Group 903/581-5858
Alpha Centre 45,632 3 82% 8,005 2,880 $14.00 20.0% Base Yr. B Russell Patterson
3200 Troup Highway Patterson Commercial Property
Aberfeldy, Ltd. 903/597-1800
Atriums 39,086 1 95% 1,759 1,086 $12.50 15.0% Base Yr. B Russell Patterson
1820 Shiloh Road Patterson Commercial Property
Aberfeldy, Ltd. 903/597-1800
Southeast Center 38,757 4 80% 7,873 3,823 $16.00 - 13.5% $6.61 A Dan Spivey
3301 Troup Highway $18.00 Roosth Properties
Roosth Properties 903/593-8333
Southpark Centre 48,309 3.5 97% 1,325 1,325 $15.50 - 11.0% Base Yr. B Glenn Eikner
1828 ESE Loop 323 $17.00 Burns Commercial Properties
Negem Investments, LLC 903/534-1200
Scottish Highlands Office 33,002 1 90% 3,253 1,716 $14.00 N/A Base Yr. B Glenn Eikner
Highway 110 S. at Kensington Net of Utilities Burns Commercial Properties
Genecov Group 903/534-1200
Oakglen Office Building 14,463 1 96% 705 705 $14.00 15.0% Base Yr. B Carrie Johnson
5620 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
Threlkeld Building 15,929 2 100% 0 0 $15.00 N/A None B Don Robert Johnson
515 WSW Loop 323 Trust Property Mgmt.
903/581-6560
Atelier Office Buildings 13,960 1 100% 0 0 $13.72* N/A Base Yr. B Carrie Johnson
3800 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
* Tenant pays for certain charges such as utilities and/or janitorial. Rate shown includes an estimate for these sevices.
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
Bullard Road Square 14,114 1 100% 0 0 $12.00* N/A Base Yr. C Carrie Johnson
5604 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
Woodgate I 32,776 1 100% 0 0 $13.25 N/A N/A B Brian Burks
1121 ESE Loop 323 Landbridge Commercial
CG Investments, LP 903/352-3000
Woodgate II 33,040 1 95% 1,501 1,501 $14.50 15.0% Base Yr. B Russell Patterson
1021 ESE Loop 323 Patterson Commercial Property
Flowers Davis PLLC 903/597-1800
Woodgate IV 50,757 1 91% 4,700 2,700 $14.00 13.6% $6.00 B Don Robert Johnson
1101 ESE Loop 323 Trust Property Mgmt.
Copeland Gate, LLC 903/581-6560
Southside Office Building 15,837 1 90% 2,000 500 $12.00 N/A None C Martin Heines
1324 S. Beckham Martin Heines Real Estate
Pollard-Heines Buildings, LLC 903/593-2367
Oak Leaf Building 12,360 1 100% 0 0 $12.00* N/A $2.75 C Carrie Johnson
5528 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
Winchester Office Complex 12,000 1 100% 0 0 $12.00 N/A None C Carrie Johnson
211-215 Winchester Drive Harbor Properties
Harbor Properties 888/792-0308
The Colonial 10,300 1 100% 0 0 $13.00 N/A None B Carrie Johnson
5935 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
Highlands Office 7,730 1 100% 0 0 $13.50 N/A None C Bob Matush
2624 Kensington 903/561-7287
Bob Matush
* Tenant pays for certain charges such as utilities and/or janitorial. Rate shown includes an estimate for these sevices.
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
Southgate Office Park 11,893 1 100% 0 0 $15.00 N/A Base Yr. B Mark Whatley
720 WSW Loop 323 Glenn Eikner
Genecov Group Burns Commercial Properties
903/534-1200
Off Broadway II 22,990 1 0% 22,990 22,990 Negotiable N/A N/A B Nolan Manziel
2301 S. Broadway Avenue 903/592-4315
Nolan Manziel
Pruitt Place Building 10,000 1 55% 4,500 4,500 $15.50 N/A N/A A Don Carroll
1015 Pruitt Place NNN Landbridge Commercial
Abby Development 903/561-9527
1014 Pruitt Place 8,000 1 100% 0 0 $15.50 N/A N/A A Don Carroll
Abby Development NNN Landbridge Commercial
Building 1 903/561-9527
1014 Pruitt Place 12,000 1 100% 0 0 $15.50 N/A N/A A Don Carroll
Abby Development NNN Landbridge Commercial
Building 2 903/561-9527
Old Jacksonville Professional Park 20,000 1 100% 0 0 $15.50 N/A N/A A Don Carroll
6760 & 6770 Old Jacksonville Road NNN Landbridge Commercial
Abby Development 903/561-9527
Regions Bank Building 12,367 1 100% 0 0 $15.50 N/A Base Yr. B Taylor Burns
1000 WSW Loop 323 Burns Commercial Properties
WSW Loop Partners, LLC 903/534-1200
Jordan Plaza 40,000 1 94% 2,400 2,400 $11.00 $3.60/SF N/A B Brian Burks
104-115 Jordan Plaza Blvd. Landbridge Commercial
Verian Investments, LP 903/352-3000
Kinsey Plaza 26,592 1 96% 1,000 1,000 $12.00 N/A N/A B Marc Ivy
1420 WSW Loop 323 Bridgewater Realty
ETX Tyler Properties 903/530-1984
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
Blue Mountain Office 7,500 1 67% 2,500 2,000 $18.00 N/A N/A A Marc Ivy
Blue Mountain Blvd. Bridgewater Realty
Fleming Properties 903/530-1984
Broadway Commons 16,000 1 100% 0 0 $16.00 N/A N/A B Robert Means
8288 S. Broadway Investment Real Estate Svcs.
Andres Alarcon 903/594-8880
Plantation Center 20,000 1 100% 0 0 $14.00 N/A N/A B Robert Means
1402-1406 Rice Rd. NNN Investment Real Estate Svcs.
903/594-8880
ETS Building 3,600 1 0% 3,600 3,600 $10.00 N/A N/A C Brian Burks
419 Rice Rd. NNN Landbridge Commercial
903/352-3000
Corporate Green Office Park 19,945 1 100% 0 0 $16.00 N/A N/A A Matthew Marshall
5751-5767 Eagles Nest Blvd. NNN Drake Real Estate
Phil Burks 903/581-3737
Broadway Hills Plaza 16,234 2 49% 8,234 7,720 $16.00 N/A N/A A Matthew Marshall
7925 S. Broadway, Bldg. 11 NNN Drake Real Estate
CHB Interests, LLC 903/581-3737
Suburban Totals: 1,483,178 89.1% 161,912 $15.85 (avg)
Totals For All Properties: 2,244,123 85.4% 327,288 $15.12 (avg)
TYLER OFFICE MARKET SURVEY
September, 2015
The annual Burns Commercial Properties Office Market survey was just completed and the results indicate that the gradual
decrease in the office occupancy rate in the City has continued over the past twelve months.
The Survey includes fifty six buildings which contain 2,233,733 square feet. The current overall occupancy rate stands at
84.9%, a decrease from 85.9% one year ago. Owner occupied buildings are not included in the Survey.
Going back to the year 2008, we find that the occupancy rate was 90.2%, with a total of 209,291 square feet of vacant
space. Currently, the local market contains 336,730 square feet of vacancy. This has occurred despite the fact that there
has not been a large speculative office building constructed in the City since 1986.
The occupancy rate has been trending downward for years, increasing slightly in 2010, but declining in all the other years
since 2008.
Theories as to the cause of this decline include several factors. Advances in technology have made it possible for office
users to operate with a reduced number of administrative workers, while the use of work stations has reduced the number
of individual offices needed in most office settings. Additionally, the current low interest rate environment has caused a
number of local firms to build their own office structures, decreasing the demand for lease space. Another item which
affects demand for office space in Tyler is the lack of large (30,000 square feet or more) spaces which might help attract
national companies to place a branch operation here. Currently only three buildings have spaces which can offer suites
with more than 10,000 contiguous square feet. The largest of these contains 22,990 square feet.
The Survey reveals that the average rate Landlords are quoting for vacant space rose slightly from last years’ $14.76 per
square foot to $15.24 per square foot.
Class A buildings experienced a decrease in occupancy from 89.3% to 86.5%, while Class B structures increased in
occupancy from 82.4% in 2014 to 83.1% in 2015. Class C building occupancy rates decreased from 90.7% to 88.8%.
The Tyler office market contrasts sharply with the retail sector, which is in a rapid growth mode. The total rent per square
foot paid by most Tyler retail tenants is well in excess of the rate office users pay. The fact that most office tenants do not
pay for utilities, taxes, insurance, and common area maintenance means that retail tenants (who normally are charged for
these items) are paying significantly higher rates than office tenants are enjoying.
Thanks to all the owners and managers who contributed data for this Survey, and to Peggie Jenkins for compiling it.
Taylor Burns Owner/Broker Burns Commercial Properties, LLC
Table 1
TYLER OFFICE MARKET SURVEY
SEPTEMBER 2015
Total Office Market Statistics
Number of Buildings: 56
Total Square Feet: 2,233,733
Total Vacant Square Feet: 336,730
Overall Occupancy Rate: 84.9%
Average Annual Rental Rate Per SF: $15.24
Tyler CBD (Downtown) Office Market Statistics
Number of Buildings: 14
Total Square Feet: 759,952
Total Vacant Square Feet: 146,601
Occupancy Rate: 80.7%
Average Annual Rental Rate Per SF: $13.30
Tyler Suburban (South Tyler) Office Market Statistics
Number of Buildings: 42
Total Square Feet: 1,473,781
Total Vacant Square Feet: 190,129
Occupancy Rate: 87.1%
Average Annual Rental Rate Per SF: $15.94
SEPTEMBER 2013
Class A
Number of Buildings: 13
Total Square Feet: 878,337
Total Vacant Square Feet: 118,499
Occupancy Rate: 86.5%
Average Annual Rental Rate Per SF: $20.04
Class B
Number of Buildings: 33
Total Square Feet: 1,176,842
Total Vacant Square Feet: 198,303
Occupancy Rate: 83.1%
Average Annual Rental Rate Per SF: $14.25
Class C
Number of Buildings: 10
Total Square Feet: 178,554
Total Vacant Square Feet: 19,928
Occupancy Rate: 88.8%
Average Annual Rental Rate Per SF: $12.55
TYLER OFFICE MARKET SURVEY
Table 2
CITY: Tyler
MARKET: Central Business District (Downtown)
DATE: September, 2015 COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler CBD Office Market
First Place 187,060 12 90% 19,744 6,548 $15.00 - 10.8% $9.42 A Allen Bell
100 E. Ferguson Street $17.00 Allen Bell Property Svcs.
Crest Properties, Ltd. 903/595-2805
Plaza Tower 209,524 19 80% 43,306 11,326 $16.50 - 11.4% Base Yr. A Taylor Burns
110 N. College Avenue (incl 8,904 sf in basement) $17.00 Burns Commercial Properties
Genecov Group 903/534-1200
200 Broadway Center (KLTV BLDG) 54,904 4 62% 20,592 10,296 $13.00 N/A Base Yr. B Taylor Burns
105 W. Ferguson Street Burns Commercial Properties
TV-3, Inc. 903/534-1200
Tyler Office Center 17,000 2 45% 9,500 3,000 $10.50 N/A None B Art Mullan
120 S. Broadway Avenue Signature Management, Inc.
Individual 903/526-0880
United Heritage Bldg. 13,252 2 71% 3,900 1,492 $13.00 5.0% Base Yr. B Robert Means
522 S. Broadway Avenue Investment Real Estate Svcs.
Woldert Rentals, LLC 903/594-8880
People's Petroleum Building 76,305 15 49% 23,492 5,891 $16.00 16.0% Base Yr. B Andy Bergfeld
102 N. College Avenue Bergfeld Realty
People's Petroleum Bldg., LLC 903/592-1032
The Energy Center 41,560 3 85% 3,000 1,000 $12.00 N/A None C Martin Heines
719 W. Front Street Martin Heines Real Estate
Briarwood Group, Ltd. 903/593-2367
Fountain Square 29,484 2 90% 3,500 1,200 $11.00 N/A None C Martin Heines
401 E. Front Street Martin Heines Real Estate
Briarwood Group, Ltd. 903/593-2367
Blackstone Building 26,620 6 100% 0 0 $13.00 20.9% $6.67 B Allen Bell
315 N. Broadway Avenue Allen Bell Property Svcs.
Tyler Chamber of Commerce 903/595-2805
BURNS COMMERCIAL PROPERTIES 2015 OFFICE MARKET SURVEY, TYLER, TEXAS
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler CBD Office Market
122 South College Building 6,028 2 0% 6,028 6,028 $10.00 N/A None C Bill Whitehurst
122 S. College Avenue 903/595-0470
Whitehurst & Smith
Wadel-Connally 30,808 3 62% 11,739 3,740 $14.00 - 17.3% $5.23 B Allen Bell
112 E. Line Street $17.00 Allen Bell Property Svcs.
BSGJ1, LLC 903/595-2805
Austin Bank Building 35,841 12 93% 1,800 1,000 $12.50 N/A None C Martin Heines
305 S. Broadway Avenue Martin Heines Real Estate
Briarwood Group, Ltd 903/593-2367
210 South Broadway Building 13,262 2 100% 0 0 $13.50 15.0% Base Yr. B Andy Bergfeld
210 S. Broadway Avenue Bergfeld Realty
Broadway Rusty Nail, Ltd. 903/592-1032
320 South Broadway Avenue 18,304 2 100% 0 0 $13.50 5.0% Base Yr. B Andy Bergfeld
320 S. Broadway Avenue Bergfeld Realty
Metro Asset Management, LLC 903/592-1032
Totals For CBD: 759,952 80.7% 146,601 $13.14 (avg)
CITY: Tyler
MARKET: Suburban
DATE: September, 2015 COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
One American Center 113,708 7 82% 20,302 8,424 $17.50 - 12.6% Base Yr. A Taylor Burns
909 ESE Loop 323 $19.00 Burns Commercial Properties
Mesa Loans of Athens, L.P. 903/534-1200
Two American Center 94,017 5 94% 5,425 3,589 $17.00 - 16.0% Base Yr. A Russell Patterson
821 ESE Loop 323 $19.00 Patterson Commercial Property
Aberfeldy, Ltd. 903/597-1800
Grande Centre 90,514 5 100% 0 0 $20.00 - 12.2% $7.35 A Taylor Burns
6101 S. Broadway Avenue $23.00 Burns Commercial Properties
David Lake 903/534-1200
Grande Plaza 57,500 1 98% 1,387 1,387 Negotiable N/A N/A B Brad Donley
212 Grande Blvd. Pyle Properties
Pyle Properties 903/509-8161
Heartland Financial Center 58,578 2 100% 0 0 Negotiable 15.0% Base Yr. A Brig North
501 Shelley Drive Heartland SIG
Hibbs Financial 903/266-5647
Woodgate Centre 95,007 4 90% 9,361 3,985 $15.00 - 13.2% Base Yr. B Glenn Eikner
1001 ESE Loop 323 $16.50 Burns Commercial Properties
Woodgate Centre, LLC 903/534-1200
Paluxy Square 79,380 1 67% 26,412 3,403 $13.50 - N/A Base Yr. B Mark Whatley
3800 Paluxy Drive $15.00 Burns Commercial Properties
Genecov Group 903/534-1200
Commerce Square 73,165 1 76% 10,949 3,020 $11.10 N/A None B James Wynne, III
3334 SSW Loop 323 Commerce Square Corp.
Wynne Interests 903/509-9795
Oak Plaza Building 59,610 2 86% 8,341 5,157 $16.00 13.5% $6.04 B Dan Spivey
3300, 3304 & 3310 S. Broadway Roosth Properties
Roosth Properties 903/593-8333
Shiloh Office Park 22,131 1 86% 3,011 3,011 $13.50 N/A Base Yr. B Russell Patterson
921 Shiloh Road Net Elec/Janitorial Patterson Commercial Property
Aberfeldy, Ltd. 903/597-1800
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
Independence Center 54,337 4 89% 6,033 3,731 $13.50 15.0% Base Yr. B Don Simmons
100 Independence Place Simmons Real Estate
Genecov Group 903/581-5858
Alpha Centre 45,632 3 80% 9,071 2,880 $14.00 20.0% Base Yr. B Russell Patterson
3200 Troup Highway Patterson Commercial Property
Aberfeldy, Ltd. 903/597-1800
Atriums 39,086 1 93% 2,839 1,450 $12.50 15.0% Base Yr. B Russell Patterson
1820 Shiloh Road Patterson Commercial Property
Aberfeldy, Ltd. 903/597-1800
Southeast Center 38,757 4 70% 12,008 5,157 $16.00 - 13.5% $6.61 A Dan Spivey
3301 Troup Highway $18.00 Roosth Properties
Roosth Properties 903/593-8333
Southpark Centre 48,309 3.5 91% 4,475 2,333 $15.50 - 11.0% Base Yr. B Glenn Eikner
1828 ESE Loop 323 $17.00 Burns Commercial Properties
Negem Investments, LLC 903/534-1200
Scottish Highlands Office 33,002 1 90% 3,253 1,716 $14.00 N/A Base Yr. B Glenn Eikner
Highway 110 S. at Kensington Net of Utilities Burns Commercial Properties
Genecov Group 903/534-1200
Oakglen Office Building 14,463 1 100% 0 0 $14.00 15.0% Base Yr. B Carrie Johnson
5620 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
Threlkeld Building 15,929 2 100% 0 0 $15.00 N/A None B Don Robert Johnson
515 WSW Loop 323 Trust Property Mgmt.
903/581-6560
Atelier Office Buildings 13,960 1 95% 686 686 $13.00* N/A Base Yr. B Carrie Johnson
3800 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
Bullard Road Square 14,114 1 100% 0 0 $12.00* N/A Base Yr. C Carrie Johnson
5604 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
Woodgate I 30,937 1 85% 4,650 1,560 $14.50 15.0% $6.20 B Brian Burks
1121 ESE Loop 323 Landbridge Commercial
CG Investments, LP 903/352-3000
Woodgate II 33,040 1 97% 1,021 1,021 $14.50 15.0% Base Yr. B Russell Patterson
1021 ESE Loop 323 Patterson Commercial Property
Flowers Davis PLLC 903/597-1800
Woodgate IV 50,757 1 94% 3,045 982 $14.00 12.5% $6.00 B Don Robert Johnson
1101 ESE Loop 323 Trust Property Mgmt.
Copeland Gate, LLC 903/581-6560
Southside Office Building 15,837 1 90% 2,000 500 $12.00 N/A None C Martin Heines
1324 S. Beckham Martin Heines Real Estate
Pollard-Heines Buildings, LLC 903/593-2367
Oak Leaf Building 12,360 1 100% 0 0 $12.00* N/A $2.75 C Carrie Johnson
5528 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
Winchester Office Complex 12,000 1 100% 0 0 $12.00 N/A None C Carrie Johnson
211-215 Winchester Drive Harbor Properties
Harbor Properties 888/792-0308
The Colonial 10,300 1 100% 0 0 $13.00 N/A None B Carrie Johnson
5935 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
Highlands Office 7,730 1 100% 0 0 $13.50 N/A None C Bob Matush
2624 Kensington 903/561-7287
Bob Matush
* Tenant pays for certain charges such as utilities and/or janitorial. Rate shown includes an estimate for these sevices.
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
Southgate Office Park 11,893 1 100% 0 0 $15.00 N/A Base Yr. B Mark Whatley
720 WSW Loop 323 Glenn Eikner
Genecov Group Burns Commercial Properties
903/534-1200
Off Broadway II 22,990 1 0% 22,990 22,990 Negotiable N/A N/A B Nolan Manziel
2301 S. Broadway Avenue 903/592-4315
Nolan Manziel
Pruitt Place Building 10,000 1 55% 4,500 4,500 $15.50 N/A N/A A Don Carroll
1015 Pruitt Place NNN Landbridge Commercial
Abby Development 903/561-9527
1014 Pruitt Place 8,000 1 100% 0 0 $15.50 N/A N/A A Don Carroll
Abby Development NNN Landbridge Commercial
Building 1 903/561-9527
1014 Pruitt Place 12,000 1 100% 0 0 $15.50 N/A N/A A Don Carroll
Abby Development NNN Landbridge Commercial
Building 2 903/561-9527
Old Jacksonville Professional Park 20,000 1 100% 0 0 $15.50 N/A N/A A Don Carroll
6760 & 6770 Old Jacksonville Road NNN Landbridge Commercial
Abby Development 903/561-9527
Regions Bank Building 12,367 1 100% 0 0 $15.50 N/A Base Yr. B Taylor Burns
1000 WSW Loop 323 Burns Commercial Properties
WSW Loop Partners, LLC 903/534-1200
Jordan Plaza 40,000 1 94% 2,400 2,400 $11.00 $3.60/SF N/A B Brian Burks
104-115 Jordan Plaza Blvd. Landbridge Commercial
Verian Investments, LP 903/352-3000
Kinsey Plaza 26,592 1 88% 3,156 3,156 $12.00 - N/A N/A B Ray Newman
1420 WSW Loop 323 $16.00 Bridgewater Realty
ETX Tyler Properties 903/747-2314
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
Broadway Commons 16,000 1 100% 0 0 $16.00 N/A N/A B Robert Means
8288 S. Broadway Investment Real Estate Svcs.
Andres Alarcon 903/594-8880
Plantation Center 20,000 1 70% 6,000 6,000 $14.00 N/A N/A B Robert Means
1402-1406 Rice Rd. NNN Investment Real Estate Svcs.
903/594-8880
ETS Building 3,600 1 0% 3,600 3,600 $12.00 N/A N/A C Robert Means
419 Rice Rd. NNN Investment Real Estate Svcs.
903/594-8880
Corporate Green Office Park 19,945 1 75% 4,980 4,980 $16.00 N/A N/A A Matthew Marshall
5751-5767 Eagles Nest Blvd. NNN Drake Real Estate
Phil Burks 903/581-3737
Broadway Hills Plaza 16,234 2 49% 8,234 4,830 $16.00 N/A N/A A Matthew Marshall
7925 S. Broadway, Bldg. 11 NNN Drake Real Estate
CHB Interests, LLC 903/581-3737
Suburban Totals: 1,473,781 87.1% 190,129 $15.94 (avg)
Totals For All Properties: 2,233,733 84.9% 336,730 $15.24 (avg)
TYLER OFFICE MARKET SURVEY
September, 2014
The annual Burns Commercial Properties Office Market Survey reveals that the Tyler Office Market has experienced very little change
since the 2013 Survey was completed. Both the Occupancy Rate and the quoted lease rate have deviated very slightly from the
previous year.
The Survey reveals that the Occupancy Rate for the fifty three buildings surveyed stands at 85.9%, virtually unchanged from last year’s
results, in which the rate was 85.8%. The average quoted lease rate stands at $14.76 per rentable square foot, up slightly from last
year, when it stood at $14.44 per square foot.
The average lease rate is calculated on a “gross lease” basis, which is a lease in which the Landlord pays all expenses, including utilities,
taxes, insurance, janitorial service, and common area maintenance. Some properties listed in the survey are leased on a triple net
basis, in which the tenant pays for these expenses. For purposes of determining the average rental rate, an estimate of the expenses
was made and is added to the quoted lease rate.
The fifty three buildings included in the Survey contain a total of 2,162,125 square feet, of which 304,897 square feet is currently
vacant. The total absorption of space for the year was virtually stagnant, standing at 8,367 square feet.
The downtown Tyler office market experienced a slight drop in occupancy from 82.1% to 80.35, while the suburban market occupancy
moved upward slightly from 87.8% to 89.0%.
Class B & Class C buildings enjoyed a slight uptick in occupancy rates, while Class A buildings declined from 91.7% in 2013 to 89.3%
this year.
Tyler has experienced a trend in which a number of office tenants have purchased land and constructed their own office buildings as
the current low interest rate environment makes ownership more attractive than it has been in the past. This trend has resulted in
fewer tenants leasing space. The Survey does not include statistics for owner occupied properties.
We greatly appreciate all the building owners and managers who contributed the data necessary to complete this survey. Thanks to
Peggie Jenkins for compiling it.
Taylor Burns
Broker/Owner
Burns Commercial Properties, LLC
Table 1
TYLER OFFICE MARKET SURVEYSEPTEMBER 2014
Total Office Market Statistics
Number of Buildings: 53
Total Square Feet: 2,162,125
Total Vacant Square Feet: 304,897
Overall Occupancy Rate: 85.9%
Average Annual Rental Rate Per SF: $14.76
Tyler CBD (Downtown) Office Market Statistics
Number of Buildings: 14
Total Square Feet: 765,361
Total Vacant Square Feet: 150,567
Occupancy Rate: 80.3%
Average Annual Rental Rate Per SF: $13.14
Tyler Suburban (South Tyler) Office Market Statistics
Number of Buildings: 39
Total Square Feet: 1,396,764
Total Vacant Square Feet: 154,330
Occupancy Rate: 89.0%
Average Annual Rental Rate Per SF: $15.37
Table 2
TYLER OFFICE MARKET SURVEYSEPTEMBER 2014
Class A
Number of Buildings: 12
Total Square Feet: 862,567
Total Vacant Square Feet: 91,714
Occupancy Rate: 89.3%
Average Annual Rental Rate Per SF: $19.75
Class B
Number of Buildings: 32
Total Square Feet: 1,124,604
Total Vacant Square Feet: 196,939
Occupancy Rate: 82.4%
Average Annual Rental Rate Per SF: $13.82
Class C
Number of Buildings: 9
Total Square Feet: 174,954
Total Vacant Square Feet: 16,244
Occupancy Rate: 90.7%
Average Annual Rental Rate Per SF: $11.83
CITY: Tyler
MARKET: Central Business District (Downtown)
DATE: September, 2014 COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler CBD Office Market
First Place 187,060 12 89% 20,616 4,054 $15.00 - 10.8% $9.42 A Allen Bell
100 E. Ferguson Street $17.00 Allen Bell Property Svcs.
Crest Properties, Ltd. 903/595-2805
Plaza Tower 214,933 19 82% 38,680 11,326 $16.00 - 11.4% Base Yr. A Taylor Burns
110 N. College Avenue (incl 8,904 sf in basement) $17.00 Burns Commercial Properties
Genecov Group 903/534-1200
200 Broadway Center (KLTV BLDG) 54,904 4 62% 20,592 10,296 $13.00 N/A Base Yr. B Taylor Burns
105 W. Ferguson Street Burns Commercial Properties
TV-3, Inc. 903/534-1200
Tyler Office Center 17,000 2 45% 9,500 3,000 $10.50 N/A None B Art Mullan
120 S. Broadway Avenue Signature Management, Inc.
Individual 903/526-0880
United Heritage Bldg. 13,252 2 71% 3,900 1,492 $14.00 - 5.0% Base Yr. B Russell Patterson
522 S. Broadway Avenue $15.00 Patterson Commercial Property
Woldert Rentals, LLC 903/597-1800
People's Petroleum Building 76,305 15 49% 38,915 5,891 $13.00 16.0% Base Yr. B Andy Bergfeld
102 N. College Avenue Bergfeld Realty
People's Petroleum Bldg., LLC 903/592-1032
The Energy Center 41,560 3 85% 3,000 1,200 $12.00 N/A None C Martin Heines
719 W. Front Street Martin Heines Real Estate
Briarwood Group, Ltd. 903/593-2367
Fountain Square 29,484 2 85% 5,000 1,600 $11.00 N/A None C Martin Heines
401 E. Front Street Martin Heines Real Estate
Briarwood Group, Ltd. 903/593-2367
Blackstone Building 26,620 6 100% 0 0 $13.00 20.9% $6.61 B Allen Bell
315 N. Broadway Avenue Allen Bell Property Svcs.
Tyler Chamber of Commerce 903/595-2805
BURNS COMMERCIAL PROPERTIES 2014 OFFICE MARKET SURVEY, TYLER, TEXAS
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler CBD Office Market
122 South College Building 6,028 2 75% 1,507 1,507 $10.00 N/A None C Bill Whitehurst
122 S. College Avenue 903/595-0470
Whitehurst & Smith
Wadel-Connally 30,808 3 78% 6,857 3,600 $14.00 - 17.3% $5.37 B Allen Bell
112 E. Line Street $17.00 Allen Bell Property Svcs.
BSGJ1, LLC 903/595-2805
Austin Bank Building 35,841 12 92% 2,000 1,150 $12.00 N/A None C Martin Heines
305 S. Broadway Avenue Martin Heines Real Estate
Briarwood Group, Ltd 903/593-2367
210 South Broadway Building 13,262 2 100% 0 0 $13.50 15.0% Base Yr. B Andy Bergfeld
210 S. Broadway Avenue Bergfeld Realty
Broadway Rusty Nail, Ltd. 903/592-1032
320 South Broadway Avenue 18,304 2 100% 0 0 $13.50 5.0% Base Yr. B Andy Bergfeld
320 S. Broadway Avenue Bergfeld Realty
Metro Asset Management, LLC 903/592-1032
Totals For CBD: 765,361 80.3% 150,567 $13.14 (avg)
CITY: Tyler
MARKET: Suburban
DATE: September, 2014 COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
One American Center 113,708 7 89% 12,254 6,023 $17.50 - 12.6% Base Yr. A Taylor Burns
909 ESE Loop 323 $19.00 Burns Commercial Properties
Mesa Loans of Athens, L.P. 903/534-1200
Two American Center 94,017 5 100% 0 0 $17.00 - 16.0% Base Yr. A Russell Patterson
821 ESE Loop 323 $19.00 Patterson Commercial Property
Aberfeldy, Ltd. 903/597-1800
Grande Centre 90,514 5 100% 0 0 $20.00 - 12.2% $7.27 A Taylor Burns
6101 S. Broadway Avenue $23.00 Burns Commercial Properties
David Lake 903/534-1200
Heartland Financial Center 58,578 2 100% 0 0 Negotiable 15.0% Base Yr. A Brig North
501 Shelley Drive Heartland SIG
Hibbs Financial 903/266-5647
Woodgate Centre 95,007 4 92% 7,891 2,500 $15.00 - 13.2% Base Yr. B Glenn Eikner
1001 ESE Loop 323 $16.50 Burns Commercial Properties
Woodgate Centre, LLC 903/534-1200
Paluxy Square 79,238 1 75% 19,845 2,331 $13.50 - N/A Base Yr. B Mark Whatley
3800 Paluxy Drive $15.00 Burns Commercial Properties
Genecov Group 903/534-1200
Commerce Square 73,165 1 71% 15,460 5,600 $10.85 N/A None B James Wynne, III
3334 SSW Loop 323 Commerce Square Corp.
Wynne Interests 903/509-9795
Oak Plaza Building 59,610 2 86% 8,341 5,157 $16.00 13.5% $5.87 B Dan Spivey
3300, 3304 & 3310 S. Broadway Roosth Properties
Roosth Properties 903/593-8333
Shiloh Office Park 22,131 1 86% 3,011 3,011 $13.50 N/A Base Yr. B Russell Patterson
921 Shiloh Road Net Elec/Janitorial Patterson Commercial Property
Aberfeldy, Ltd. 903/597-1800
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
Independence Center 54,337 4 89% 6,033 3,731 $13.50 15.0% Base Yr. B Don Simmons
100 Independence Place Simmons Real Estate
Genecov Group 903/581-5858
Alpha Centre 45,632 3 85% 6,876 2,880 $14.00 20.0% Base Yr. B Russell Patterson
3200 Troup Highway Patterson Commercial Property
Aberfeldy, Ltd. 903/597-1800
Atriums 39,086 1 98% 614 614 $12.50 15.0% Base Yr. B Russell Patterson
1820 Shiloh Road Patterson Commercial Property
Aberfeldy, Ltd. 903/597-1800
Southeast Center 38,757 4 70% 12,008 5,157 $16.00 - 13.5% $6.61 A Dan Spivey
3301 Troup Highway $18.00 Roosth Properties
Roosth Properties 903/593-8333
Southpark Centre 48,309 3.5 93% 3,225 2,298 $15.50 - 11.0% Base Yr. B Glenn Eikner
1828 ESE Loop 323 $17.00 Burns Commercial Properties
Negem Investments, LLC 903/534-1200
Scottish Highlands Office 32,896 1 80% 6,442 2,966 $14.00 N/A Base Yr. B Glenn Eikner
Highway 110 S. at Kensington Net of Utilities Burns Commercial Properties
Genecov Group 903/534-1200
Broadway Professional Building 25,510 2 85% 3,786 2,430 $14.00 N/A $6.00 B Brian Burks
2737 S. Broadway Avenue Landbridge Commercial
Motina Ltd. 903/352-3000
Oakglen Office Building 14,463 1 100% 0 0 $14.00 15.0% Base Yr. B Carrie Johnson
5620 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
Threlkeld Building 15,929 2 100% 0 0 $15.00 N/A None B Don Robert Johnson
515 WSW Loop 323 Trust Property Mgmt.
903/581-6560
Atelier Office Buildings 13,960 1 95% 686 686 $13.00* N/A Base Yr. B Carrie Johnson
3800 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
Bullard Road Square 14,114 1 100% 0 0 $12.00* N/A Base Yr. C Carrie Johnson
5604 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
Woodgate I 30,937 1 88% 3,734 954 $13.50 15.0% $6.20 B Don Robert Johnson
1121 ESE Loop 323 Trust Property Mgmt.
Woodgate I, Ltd. 903/581-6560
Woodgate II 33,040 1 100% 0 0 $14.50 15.0% Base Yr. B Russell Patterson
1021 ESE Loop 323 Patterson Commercial Property
Flowers Davis PLLC 903/597-1800
Woodgate IV 50,757 1 92% 4,115 1,947 $14.00 12.5% $6.00 B Don Robert Johnson
1101 ESE Loop 323 Trust Property Mgmt.
Copeland Gate, LLC 903/581-6560
Southside Office Building 15,837 1 90% 2,000 425 $12.00 N/A None C Martin Heines
1324 S. Beckham Martin Heines Real Estate
Pollard-Heines Buildings, LLC 903/593-2367
Oak Leaf Building 12,360 1 94% 756 756 $12.00* N/A $2.75 C Carrie Johnson
5528 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
Winchester Office Complex 12,000 1 91% 1,113 1,113 $12.00 N/A None C Carrie Johnson
211-215 Winchester Drive Harbor Properties
Harbor Properties 888/792-0308
The Colonial 10,300 1 100% 0 0 $13.00 N/A None B Carrie Johnson
5935 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
Highlands Office 7,730 1 89% 868 868 $13.50 N/A None C Glenn Eikner
2624 Kensington Burns Commercial Properties
Bob Matush 903/534-1200
* Tenant pays for certain charges such as utilities and/or janitorial. Rate shown includes an estimate for these sevices.
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
Southgate Office Park 11,893 1 92% 926 926 $15.00 N/A Base Yr. B Mark Whatley
720 WSW Loop 323 Glenn Eikner
Genecov Group Burns Commercial Properties
903/534-1200
Off Broadway II 22,990 1 0% 22,990 22,990 Negotiable N/A N/A B Nolan Manziel
2301 S. Broadway Avenue 903/592-4315
Nolan Manziel
Pruitt Place Building 10,000 1 55% 4,500 4,500 $15.50 N/A N/A A Don Carroll
1015 Pruitt Place NNN Landbridge Commercial
Abby Development 903/561-9527
1014 Pruitt Place 8,000 1 100% 0 0 $15.50 N/A N/A A Don Carroll
Abby Development NNN Landbridge Commercial
Building 1 903/561-9527
1014 Pruitt Place 12,000 1 100% 0 0 $15.50 N/A N/A A Don Carroll
Abby Development NNN Landbridge Commercial
Building 2 903/561-9527
Old Jacksonville Professional Park 20,000 1 100% 0 0 $15.50 N/A N/A A Don Carroll
6760 & 6770 Old Jacksonville Road NNN Landbridge Commercial
Abby Development 903/561-9527
Regions Bank Building 12,367 1 100% 0 0 $15.50 N/A Base Yr. B Taylor Burns
1000 WSW Loop 323 Burns Commercial Properties
WSW Loop Partners, LLC 903/534-1200
Jordan Plaza 40,000 1 94% 2,400 2,400 $11.00 $3.60/SF N/A B Brian Burks
104-115 Jordan Plaza Blvd. Landbridge Commercial
Verian Investments, LP 903/352-3000
Kinsey Plaza 26,592 1 97% 800 800 $12.00 - N/A N/A B Ray Newman
1420 WSW Loop 323 $14.00 Best Realty Services
ETX Tyler Properties 903/747-2314
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
Broadway Commons 16,000 1 100% 0 0 $16.00 N/A N/A B Robert Means
8288 S. Broadway Investment Real Estate Svcs.
Andres Alarcon 903/594-8880
Corporate Green Office Park 15,000 1 76% 3,656 2,500 $15.50 N/A N/A A Matthew Marshall
5751-5767 Eagles Nest Blvd. NNN Drake Real Estate
Phil Burks 903/581-3737
Suburban Totals: 1,396,764 89.0% 154,330 $15.37 (avg)
Totals For All Properties: 2,162,125 85.9% 304,897 $14.76 (avg)
TYLER OFFICE MARKET SURVEY
September, 2013
The annual Burns Commercial Properties Office Market Survey reveals that both the occupancy rate and the quoted lease rate for
office buildings in Tyler changed very little over the previous twelve months.
The 2012 survey found that the overall occupancy rate was 85.7%, while the 2013 survey shows that the current rate is 85.8%. The
average lease rate for the fifty three buildings surveyed is $14.44 per rentable square foot, which is virtually unchanged from last year,
and is only up slightly in the past three years, as the 2010 rate was $14.21/square foot.
The average lease rate is calculated on a “gross lease” basis, which is a lease in which the Landlord pays all expenses, including
utilities, taxes, insurance, and maintenance. Some of the properties in the survey are leased on a triple net basis, in which the tenant
pays its portion of the expenses, but for purposes of calculating an average rent, these numbers are adjusted to reach a rental rate
which is equivalent to a gross lease rate.
The fifty three buildings surveyed contain a total of 2,154,210 rentable square feet, of which 305,349 square feet is currently reported
as being vacant.
The downtown market improved its occupancy rate from 80% to 82.1%, with a drop in vacant space of 18,528 square feet. The South
Tyler market occupancy rate dropped by one percent from 88.8% in 2012 to a current level of 87.8%. The amount of vacant space in
South Tyler increased by over 10,000 square feet.
While Class A & C office buildings are experiencing occupancy rates in the 89.9% to 91.7% range, Class B buildings contain in
excess of 217,000 square feet of vacant space, which is more than seventy one percent of the total amount of vacancy.
We appreciate all the building owners and managers who contributed the data necessary to complete this survey. Thanks to Peggie
Jenkins for compiling it.
Taylor Burns
Total Office Market Statistics
Number of Buildings: 53
Total Square Feet: 2,154,210
Total Vacant Square Feet: 305,349
Overall Occupancy Rate: 85.8%
Average Annual Rental Rate Per SF: $14.44
Tyler CBD (Downtown) Office Market Statistics
Number of Buildings: 14
Total Square Feet: 760,321
Total Vacant Square Feet: 135,781
Occupancy Rate: 82.1%
Average Annual Rental Rate Per SF: $13.00
Tyler Suburban (South Tyler) Office Market Statistics
Number of Buildings: 39
Total Square Feet: 1,393,889
Total Vacant Square Feet: 169,568
Occupancy Rate: 87.8%
Average Annual Rental Rate Per SF: $14.98
Table 1
TYLER OFFICE MARKET SURVEY
SEPTEMBER 2013
Class A
Number of Buildings: 11
Total Square Feet: 848,203
Total Vacant Square Feet: 70,250
Occupancy Rate: 91.7%
Average Annual Rental Rate Per SF: $18.95
Class B
Number of Buildings: 33
Total Square Feet: 1,131,053
Total Vacant Square Feet: 217,446
Occupancy Rate: 80.7%
Average Annual Rental Rate Per SF: $13.69
Class C
Number of Buildings: 9
Total Square Feet: 174,954
Total Vacant Square Feet: 17,653
Occupancy Rate: 89.9%
Average Annual Rental Rate Per SF: $11.61
TYLER OFFICE MARKET SURVEY
SEPTEMBER 2013
Table 2
CITY: Tyler
MARKET: Central Business District (Downtown)
DATE: September, 2013 COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler CBD Office Market
First Place 187,060 12 88% 23,028 15,968 $15.00 - 10.8% $9.44 A Allen Bell
100 E. Ferguson Street $17.00 Allen Bell Property Svcs.
Crest Properties, Ltd. 903/595-2805
Plaza Tower 214,933 19 91% 19,289 7,107 $16.00 - 11.4% Base Yr. A Taylor Burns
110 N. College Avenue (incl 8,904 SF in basement) $17.00 Burns Commercial Properties
Genecov Group 903/534-1200
200 Broadway Center (KLTV BLDG) 54,904 4 62% 20,592 10,296 $13.00 N/A Base Yr. B Taylor Burns
105 W. Ferguson Street Burns Commercial Properties
TV-3, Inc. 903/534-1200
Tyler Office Center 17,000 2 34% 11,300 3,000 $10.50 N/A None B Art Mullan
120 S. Broadway Avenue Signature Management, Inc.
Individual 903/526-0880
United Heritage Bldg. 13,252 2 89% 1,492 1,492 $14.00 - 5.0% Base Yr. B Russell Patterson
522 S. Broadway Avenue $15.00 Patterson Commercial Property
Woldert Rentals, LLC 903/597-1800
People's Petroleum Bldg. 71,265 15 39% 43,590 5,891 $13.00 16.0% Base Yr. B Andy Bergfeld
102 N. College Avenue Bergfeld Realty
People's Petroleum Bldg., LLC 903/592-1032
The Energy Center 41,560 3 94% 2,500 1,200 $12.00 N/A None C Martin Heines
719 W. Front Street Martin Heines Real Estate
Briarwood Group, Ltd. 903/593-2367
Fountain Square 29,484 2 70% 8,845 1,600 $11.00 N/A None C Martin Heines
401 E. Front Street Martin Heines Real Estate
Briarwood Group, Ltd. 903/593-2367
Blackstone Building 26,620 6 100% 0 0 $13.00 20.9% $6.57 B Allen Bell
315 N. Broadway Avenue Allen Bell Property Svcs.
Tyler Chamber of Commerce 903/595-2805
BURNS COMMERCIAL PROPERTIES 2013 OFFICE MARKET SURVEY, TYLER, TEXAS
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler CBD Office Market
122 South College Building 6,028 2 100% 0 0 $8.00 N/A None C Bill Whitehurst
122 S. College Avenue 903/595-0470
Whitehurst & Smith
Wadel-Connally 30,808 3 100% 0 0 $14.00 - 17.3% $5.13 B Allen Bell
112 E. Line Street $17.00 Allen Bell Property Svcs.
BSGJ1, LLC 903/595-2805
Austin Bank Building 35,841 12 89% 3,940 1,150 $12.00 N/A None C Martin Heines
305 S. Broadway Avenue Martin Heines Real Estate
Briarwood Group, Ltd 903/593-2367
210 South Broadway Avenue 13,262 2 91% 1,205 1,205 $13.50 15.0% Base Yr. B Andy Bergfeld
210 S. Broadway Avenue Bergfeld Realty
Broadway Rusty Nail, Ltd. 903/592-1032
320 South Broadway Avenue 18,304 2 100% 0 0 $13.50 5.0% Base Yr. B Andy Bergfeld
320 S. Broadway Avenue Bergfeld Realty
Metro Asset Management, LLC 903/592-1032
Totals For CBD: 760,321 82.1% 135,781 $13.00 (avg)
CITY: Tyler
MARKET: Suburban
DATE: September, 2013 COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
One American Center 114,344 7 99% 1,028 1,028 $17.50 12.6% Base Yr. A Taylor Burns
909 ESE Loop 323 Burns Commercial Properties
Mesa Loans of Athens, L.P. 903/534-1200
Two American Center 94,017 5 99% 818 818 $17.00 - 16.0% Base Yr. A Russell Patterson
821 ESE Loop 323 $19.00 Patterson Commercial Property
Aberfeldy, Ltd. 903/597-1800
Grande Centre 90,514 5 100% 0 0 $20.00 - 12.2% $7.37 A Taylor Burns
6101 S. Broadway Avenue $23.00 Burns Commercial Properties
David Lake 903/534-1200
Heartland Financial Center 58,578 2 88% 7,258 7,258 $14.00 15.0% Base Yr. A Brig North
501 Shelley Drive Heartland SIG
Hibbs Financial 903/266-5647
Woodgate Centre, LLC 95,007 4 87% 12,077 6,844 $14.50 - 13.2% Base Yr. B Glenn Eikner
1001 ESE Loop 323 $16.00 Burns Commercial Properties
Woodgate Centre, LLC 903/534-1200
Paluxy Square 79,238 1 75% 19,786 2,835 $13.50 - N/A Base Yr. B Mark Whatley
3800 Paluxy Drive $14.00 Burns Commercial Properties
Genecov Group 903/534-1200
Commerce Square 73,165 1 70% 16,030 5,600 $10.85 N/A None B James Wynne, III
3334 SSW Loop 323 Commerce Square Corp.
Wynne Interests 903/509-9795
Oak Plaza Building 59,610 2 86% 8,341 5,157 $16.00 13.5% $7.03 B Dan Spivey
3300, 3304 & 3310 S. Broadway Roosth Properties
Roosth Properties 903/593-8333
Shiloh Office Park 22,131 1 90% 2,273 2,273 $13.50 N/A Base Yr. B Russell Patterson
921 Shiloh Road Net Elec/Janitorial Patterson Commercial Property
Aberfeldy, Ltd. 903/597-1800
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
Independence Center 54,337 4 91% 4,991 2,991 $13.50 15.0% Base Yr. B Don Simmons
100 Independence Place Simmons Real Estate
Genecov Group 903/581-5858
Alpha Centre 45,632 3 84% 7,425 4,414 $14.00 20.0% Base Yr. B Russell Patterson
3200 Troup Highway Patterson Commercial Property
Aberfeldy, Ltd. 903/597-1800
Atriums 39,086 1 81% 7,564 2,017 $12.50 15.0% Base Yr. B Russell Patterson
1820 Shiloh Road Patterson Commercial Property
Aberfeldy, Ltd. 903/597-1800
Southeast Center 38,757 4 69% 12,129 5,105 $16.00 - 13.5% $7.26 A Dan Spivey
3301 Troup Highway $18.00 Roosth Properties
Roosth Properties 903/593-8333
Southpark Centre 48,309 3.5 91% 4,382 2,298 $14.50 - 13.0% Base Yr. B Glenn Eikner
1828 ESE Loop 323 $17.00 Burns Commercial Properties
Negem Investments, LLC 903/534-1200
Scottish Highlands Office 32,896 1 73% 8,881 2,420 $14.00 N/A Base Yr. B Glenn Eikner
Highway 110 S. at Kensington Net of Utilities Burns Commercial Properties
Genecov Group 903/534-1200
Broadway Professional Building 26,000 2 88% 3,000 1,800 $13.00 N/A $6.00 B Brian Burks
2737 S. Broadway Avenue Landbridge Commercial
Motina Ltd. 903/352-3000
Oakglen Office Building 14,463 1 100% 0 0 $14.00 15.0% Base Yr. B Carrie Johnson
5620 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
Threlkeld Building 15,929 2 100% 0 0 $15.00 N/A None B Don Robert Johnson
515 WSW Loop 323 Trust Property Mgmt.
903/581-6560
Atelier Office Buildings 13,960 1 100% 0 0 $13.00* N/A Base Yr. B Carrie Johnson
3800 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
Park Garden Offices 11,000 1 93% 800 800 $12.00 N/A None B Gordon/Patty Mosley
4411 Old Bullard Rd 903/534-5396
Gordon/Patty Mosley
Bullard Road Square 14,114 1 100% 0 0 $12.00* N/A Base Yr. C Carrie Johnson
5604 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
Woodgate I 30,937 1 91% 2,708 1,700 $13.50 15.0% $6.20 B Don Robert Johnson
1121 ESE Loop 323 Trust Property Mgmt.
Woodgate I, Ltd. 903/581-6560
Woodgate II 33,040 1 93% 2,317 2,317 $14.50 15.0% Base Yr. B Russell Patterson
1021 ESE Loop 323 Patterson Commercial Property
Flowers Davis PLLC 903/597-1800
Woodgate IV 50,757 1 87% 6,776 4,000 $14.00 12.5% $5.85 B Don Robert Johnson
1101 ESE Loop 323 Trust Property Mgmt.
Copeland Gate, LLC 903/581-6560
Southside Office Building 15,837 1 91% 1,500 425 $12.00 N/A None C Martin Heines
1324 S. Beckham Martin Heines Real Estate
Pollard-Heines Buildings, LLC 903/593-2367
Oak Leaf Building 12,360 1 100% 0 0 $12.00* N/A $2.75 C Carrie Johnson
5528 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
* Tenant pays for certain charges such as utilities and/or janitorial. Rate shown includes an estimate for these sevices.
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
Winchester Office Complex 12,000 1 100% 0 0 $12.00 N/A None C Carrie Johnson
211-215 Winchester Drive Harbor Properties
Harbor Properties 888/792-0308
The Colonial 10,300 1 100% 0 0 $13.00 N/A None B Carrie Johnson
5935 Old Bullard Road Harbor Properties
Harbor Properties 888/792-0308
Highlands Office 7,730 1 89% 868 868 $13.50 N/A None C Glenn Eikner
2624 Kensington Burns Commercial Properties
Bob Matush 903/534-1200
Southgate Office Park 11,893 1 92% 926 926 $15.00 N/A Base Yr. B Mark Whatley
720 WSW Loop 323 Glenn Eikner
Genecov Group Burns Commercial Properties
903/534-1200
Off Broadway II 22,990 1 0% 22,990 22,990 Negotiable N/A N/A B Nolan Manziel
2301 S. Broadway Avenue 903/592-4315
Nolan Manziel
Pruitt Place Building 10,000 1 55% 4,500 4,500 $15.50 N/A N/A A Don Carroll
1015 Pruitt Place NNN Landbridge Commercial
Abby Development 903/561-9527
1014 Pruitt Place 8,000 1 100% 0 0 $15.50 N/A N/A A Don Carroll
Abby Development NNN Landbridge Commercial
Building 1 903/561-9527
1014 Pruitt Place 12,000 1 100% 0 0 $15.50 N/A N/A A Don Carroll
Abby Development NNN Landbridge Commercial
Building 2 903/561-9527
Old Jacksonville Professional Park 20,000 1 89% 2,200 2,200 $15.50 N/A N/A A Don Carroll
6760 & 6770 Old Jacksonville Road NNN Landbridge Commercial
Abby Development 903/561-9527
COMMON
LARGEST ANNUAL AREA
BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG
OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT
Tyler Suburban Office Market
Regions Bank Building 12,367 1 100% 0 0 $15.50 N/A Base Yr. B Taylor Burns
1000 WSW Loop 323 Burns Commercial Properties
WSW Loop Partners, LLC 903/534-1200
Jordan Plaza 40,000 1 80% 8,000 6,000 $11.00 N/A N/A B Brian Burks
104-115 Jordan Plaza Blvd. Landbridge Commercial
Verian Investments, LP 903/352-3000
Southwest Plaza 26,591 1 100% 0 0 $12.00 - N/A N/A B Matthew Marshall
1412 WSW Loop 323 $14.00 Drake Real Estate
Woldert Rentals, LLC 903/581-3737
Broadway Commons 16,000 1 100% 0 0 $16.00 N/A N/A B Matthew Marshall
8288 S. Broadway Drake Real Estate
Andres Alarcon 903/581-3737
Suburban Totals: 1,393,889 87.8% 169,568 $14.98 (avg)
Totals For All Properties: 2,154,210 85.8% 305,349 $14.44 (avg)