Download Office Market Report - WestMark Commercial

Office Market Report
2016
CLIENT FOCUSED. RESULTS DRIVEN.
4105 84th St, Lubbock, TX 79423 • 806.794.3300 • www.westmarkcommercial.com
Office Market Report
2016
Lubbock Office Map
The Lubbock office market continues to expand
to the South and Southwest. Downtown remains
sluggish with cautious optimism taking over
leading to more and more activity. The medical
district remains stable with renovated product
commanding a premium. New construction in the
Southwest outer region continues with smaller
garden offices leading the way. The overwelming
trend is for small and smaller offices as users
downsize across the market.
North
Tech/Medical
West
Southwest
Inner
CLASS B ASSET
8.0% - 9.5%
POPULATION 3
2.7%
Southeast
Southwest
Outer
CLASS C ASSET
9.0% - 11.0%
2
4
OFFICE USE
EMPLOYMENT 2
EDUCATION AND
HEALTH SERVICES
22,000 (+6.4%)
PROFESSIONAL AND
BUSINESS SERVICES
10,800 (+10.2%)
FINANCIAL SERVICES
7,600 (+1.3%)
INFORMATION
3,700 (0.0%)
GOVERNMENT
29,400 (+2.4%)
Map Table - Rents (Full Service) 1
DOWNTOWN
A - $12 - 16 per s.f.
B - $9 - 12 per s.f.
SOUTHWEST INNER
A - $16 - 24 per s.f.
B - $8 - 12 per s.f.
Expense Growth 5
NORTH & WEST
A - $15 - 18 per s.f.
B - $6 - 9 per s.f.
SOUTHEAST
A - $13 - 15 per s.f. B - $10 - 12 per s.f.
C - $6 - 9 per s.f.
TECH/MEDICAL
A - $18 - 24 per s.f.
B - $8 - 15 per s.f.
SOUTHWEST OUTER
A - $17 - 25 per s.f.
B - $10 - 15 per s.f.
Source:
5 - Real Estate Research Corporation,
HEATH Property Advisors
POPULATION 3
309,923
% GROWTH
(Average Annual Growth)
TOTAL EMPLOYMENT 2
3.3%
RANGE
0.0 - 3.0%
AVERAGE
2.4%
RANGE
2.0 - 3.0%
AVERAGE
2.8%
CAP RATE 5
CLASS A ASSET
7.5% - 8.5%
TOTAL OFFICE SQUARE FEET
11,240,000 sf
Downtown
Source: Perryman Group
Rent Growth 5
SNAPSHOT
Total Employment 2
148,980
OFFICE EMPLOYMENT
56.9%
Lubbock Growth Forecast Through 2020
Real GDP3.77%
Real Personal Income4.79%
Real Retail Sales4.84%
Housing Permits
(0.95%)
Employment1.97%
2016 Statistics
1 Full Service Rents - Landlord pays all expences (real estate
tax, property insurance, maintenance, janitorial and utilites)
4105 84th St, Lubbock, TX 79423 • 806.794.3300 • www.westmarkcommercial.com
Sources:
2 - Bureau of Labor Statistics
3 - US Census Bureau
4 - WestMark Commercial
Research
5 - Real Estate Research
Corporation, HEATH
Property Advisors
Office Market Report
2016
Office User Employment Base
Office Wages by Industry
Government
Government
Other Services
Leisure and
Hospitality
Education &
Health Services
Professional &
Business Services
Finacial Services
Other Services
Education &
Health Services
Professional &
Business Services
Information
Trade, Transp.
& Utilities
State Employment Growth
1 - AUSTIN 4.7%
2 - DALLAS 4.5%
3 - LUBBOCK 3.3%
4 - EL PASO 3.2%
5 - SAN ANTONIO 2.9%
6 - AMARILLO 1.6%
7 - ABILENE 1.0%
8 - FORT WORTH 0.9%
9 - SAN ANGELO 0.8%
10 - HOUSTON 0.6%
11 - WICHITA FALLS 0.3%
12 - MIDLAND - 6.2%
13 - ODESSA - 8.3%
2
Financial Services
Manufacturing
Construction &
Mining
0.0%
Information
5.0%
10.0%
15.0%
20.0%
25.0%
$
$50
$100
$150
$200
Source: Bureau of Labor Statistics
$250
$300
$350
$400
Source: Bureau of Labor Statistics
Rent Range
Lubbock Metropolitan Population
320,000
Downtown
310,000
300,000
North & West
A
B
290,000
Tech/Medical
280,000
270,000
260,000
Southwest
Inner
250,000
Southeast
A
B
A
B
Southwest
Outer
230,000
A
B
C
240,000
A
B
A
B
220,000
2000
2005
2010
2015
Source: U.S. Census Bureau
4105 84th St, Lubbock, TX 79423 • 806.794.3300 • www.westmarkcommercial.com
0
5
10
15
20
25
30
Source: WestMark Commercial Research
Office Market Report
2016
Percent Change in Real GDP by Metro-Area
Southwest Region
Lubbock economic growth continues to outpace the rest of the state and region with Real GDP
growth at top levels.
2016 Regional Populations
Lubbock is the largest metropolitan area within West Texas and is the center of economic
activity for a population of roughly 700,000.
Wichita Falls
United States = 2.3
Southwest = 4.3
Percent
5.7 to 24.1
2.5 to 5.7
1.4 to 2.5
0.3 to 1.4
-2.8 to 0.3
Nonmetropolitan areas
States outside region
Source: US Census Bureau
U.S. Bureau of Economic Analysis
LUBBOCK - LEVELLAND
Trade Area - 690,722 CSA - 336,134
ABILENE
Trade Area - 334,921
CSA - 171,627
MIDLAND - ODESSA
Trade Area - 496,040 CSA - 327,171
SAN ANGELO
Trade Area - 160,427
CSA - 120,191
AMARILLO - BORGER
Trade Area - 534,828 CSA - 287,572
WICHITA FALLS
Trade Area - 287,114
CSA - 154,263
CSA - The combined statistical area of the U.S. Census Bureau consists of an adjacent
metropolitan and a Micropolitan Stabilized Area (MSA) that demonstrate economic and
social interaction and linkage.
4105 84th St, Lubbock, TX 79423 • 806.794.3300 • www.westmarkcommercial.com
CLIENT FOCUSED. RESULTS DRIVEN.
2016
WestMark Commercial provides investors and owners with local
market knowledge, property-specific and tailored marketing
plans to help them achieve thier investment goals.
Main Office:
4105 84th St.
Lubbock, TX 79423
806.794.3300
WestMark Commercial 2016
www.westmarkcommercial.com
Price: $150
The information contained in this report was obtained from sources deemed to be
reliable. Every effort was made to obtain accurate and complete information; however,
no representation, warranty or guarantee, express or implied, may be made as to the
accuracy or reliability of the information contained herein.