Quarterly Economic & Project Update 2018, Quarter 2 [April 1 June 30]

Transcription

1 Quarterly Economic & Project Update 2018, Quarter 2 [April 1 June 30]

2 O U R M I S S I O N The mission of the City of Schertz Economic Development Corporation (SEDC) is to grow the Schertz economy through Projects. Specifically, we pursue Projects that focus on the creation/retention of Primary Jobs and Infrastructure Improvements. P R I M A R Y J O B S One of the key elements of our mission involves Primary Jobs - jobs that produce goods/services for customers that are predominantly outside the region and defined by Local Government Code (12). Primary Jobs create new money for our community by exporting products. Once an employer is paid for these Primary Job-produced goods/services, the new money is redistributed into the community through wages paid to employees; capital investments; tax payments to the City, local school districts, and counties; and through payments to local suppliers. Schertz is fortunate to have a variety Primary Job Employers - companies that create Primary Jobs. In Schertz, examples of companies that create Primary Jobs are associated with our key industries of: manufacturing, warehouse and distribution, and e-commerce because they export goods/services to regional, statewide, national, or international markets. CalTex Protective Coatings is an example of a Schertz company that creates Primary Jobs. They manufacture sealants and other car-care detailing products. These products are exported to other markets, such as Kansas City, and new money is created in Schertz. This is what creates and maintains the flow of new wealth into our community. On the other hand, an example of a business sector that does not create Primary Jobs is retail or medical. Purchases made at a local shopping center or payments made when visiting the doctor generally use existing money to pay for those goods or services. These businesses rely on new money that was created through the companies that generate Primary Jobs to fuel our local economy. 2

3 P R O J E C T S Notable updates on Projects located in Schertz. TEXAS PLUMBING SUPPLY 35K Square Feet of Building Construction is finished and operations have begun. A formal grand opening will be held in the fall. WIEDERSTEIN RANCH Multiple Pad Sites Will Be Available Soon This new Schertz site marks their fifth location Status COMPLETE EVO Entertainment, the first tenant of the development, has started construction Acres Under Development EVO Facility Size 73,330 SF Proposed Opening FEBRUARY

4 R E A L E S T A T E Quarterly comparison data for the Industrial, Office, & Retail sectors for both the Schertz and San Antonio market. S C H E R T Z I n d u s t r i a l Q Q Q Q Q Average Asking Price (NNN) $5.32 $5.57 $5.61 $5.80 $5.84 Inventory (sf) 8,444,949 8,454,949 8,814,200 8,814,200 8,814,200 Vacancy Rate 9.9% 7.4% 11.1% 10.7% 10.6% Quarterly Absorption (sf) -152, ,180 4,692 91,833 8,600 O t h e r S e c t o r s O f f i c e R e t a i l Q Q Q Q Office Base Rent/Average Asking Price $15.33 $22.80 $3.95 (NNN)* $5.31 (NNN)* Inventory (sf) 205, ,133 1,858,488 1,858,488 Vacancy Rate 2.9% 2.9% 1.3% 6.0% Quarterly Absorption (sf) 0-4,129 20,694-5,845 *When removing outliers, the average rent per square foot per year range is $11-14 (NNN) S A N A N T O N I O I n d u s t r i a l Q Q Q Q Q Average Asking Price (NNN) $5.52 $5.55 $5.61 $5.64 $5.51 Inventory (sf) 114,325, ,482, ,070, ,156, ,397,265 Vacancy Rate 5.5% 4.9% 5.2% 5.3% 5.4% Quarterly Absorption (sf) 93, , ,543 42,640 73,556 O t h e r S e c t o r s O f f i c e R e t a i l Q Q Q Q Office Base Rent/Average Asking Price $21.95 $22.41 $16.36 (NNN) $17.25 (NNN) Inventory (sf) 163,053, ,095, ,276, ,938,131 Vacancy Rate 8.7% 9.0% 3.5% 3.8% Quarterly Absorption (sf) 1,128,032-41, , ,808 4

5 R E A L E S T A T E I-10 I-35 Vanderpool Bandera Boerne New Braunfels I-10 Schertz Seguin I-35 Hondo Stockdale I-35 Pleasanton I-10 San Antonio Market Schertz Market Average Asking Price - The amount for which landlords are offering their space per square foot, per year for lease for a listing. The NNN stands for Triple Net rent. In this type of commercial real estate rent, tenants pay the amount listed plus additional costs (usually operating expenses and taxes). Inventory - Total existing square feet of each property type. Vacancy Rate - Expressed as a percentage, Vacancy Rate identifies the amount of new/relet/sublet space vacant divided by the existing rental building area (includes the usable area and its associated share of the common areas). Quarterly Absorption - For existing buildings, the measure of total square feet occupied (indicated as a move-in) less the total space vacated (indicated as a move-out) over a given period of time. Sublet space and lease renewals are not factored into net absorption. However, in a lease renewal that includes the leasing of additional space, that additional space is counted in net absorption. Pre-leasing of space in non-existing buildings (planned, under construction or under renovation) is not counted in net absorption until actual move in, which by definition may not be any earlier than the delivery date. H O U S I N G Number of new residential building permits issued by City of Schertz Planning & Zoning Division during the quarter APRIL MAY JUNE TOTAL The number of permits is 11.6% lower than those issued during the same period last year. 5

6 D E V E L O P M E N T U P D A T E Details on major new development and expansions throughout Schertz during the quarter. Locations highlighted in color can be found in the photos below. D I R T W O R K Preparing site for intended use (grading, infrastructure installation, poring pads) U N D E R C O N S T R U C T I O N Activity between site preparation and certificate of occupancy issuance C O M P L E T E / R E M O D E L Certificate of occupancy issued / Internal or external work being done to existing building DIRT WORK 1. Unnamed Windy Meadows Dr - Flex 2. Unnamed Windy Meadows Dr - Flex 3. Casa Verde Farms FM Retail 4. Enterprise Building Plaza Schertz Pkwy - Industrial 5. Tri County Crossing Lookout Rd - Industrial 6. Tri County Crossing Lookout Rd - Industrial UNDER CONSTRUCTION 7. Platform Warehouse Suites FM Flex 8. Brake Check IH 35 N - Retail 9. Schertz Business Park Schertz Pkwy - Retail 10. Cibolo Creek Municipal Authority Wastewater Plant Expansion Authority Ln - Civic 11. Samuel Clemens Expansion Elbel Rd - Civic 12. Ryder Truck Expansion Doerr Ln - Industrial UNDER CONSTRUCTION 13. Comal Middle School Hubertus Rd - Civic 14. Staybridge Hotel Schertz Pwky - Hotel 15. Founders Classical Academy Expansion E. FM Civic 16. CVS Pharmacy FM Retail 17. Rose Garden Elementary E. FM Civic 18. EVO Entertainment IH 35N - Retail 19. Enterprise Building V Lookout Rd - Industrial COMPLETE/REMODEL 20. Texas Allergy & Asthma Schertz Pwky - Office 21. Simmonds Realty I-35 - Office 22. Starbucks/Retail FM Retail 23. Texas Plumbing Supply Red Iron - Industrial 6

7 D E V E L O P M E N T U P D A T E Details on major new development and expansions throughout Schertz during the quarter & DIRT WORK UNDER CONSTRUCTION COMPLETE/REMODEL 7

8 A V A I L A B I L I T Y Class A industrial properties (15K+ square feet) and development ready sites (25+ acres) that are currently available (as of July 2018). Indicated within the dashed shapes, development ready sites have immediate access to industrial grade utilities. 90 Acres Proposed Road 24 Acres 75 Acres 81 Acres B C G H 25 Acres F FM 3009 Future Road 85 Acres SCHERTZ PARKWAY J E D TRI COUNTY PARKWAY I Future Road 54 Acres INTERSTATE 35 Area of Focus Available Buildings Availability A 1150 Schwab Road (see page 9) 409,685 sf B Enterprise Building III 360,000 sf C Enterprise Building V (Under Construction) 188,000 sf D Tri-County Crossing 2 (Under Construction) 100,500 sf E Tri-County Crossing 1 (Under Construction) 96,000 sf F 7377 Doerr Lane 77,500 sf G Enterprise Building II 76,874 sf H Enterprise Building I 52,893 sf I 5800 Tri County 41,335 sf J Enterprise Business Plaza (Under Construction) 25,000 sf 8

9 A V A I L A B I L I T Y Development ready sites are indicated within the dashed shapes and have immediate access to industrial grade utilities. Properties/sections shaded in blue indicate land that is proposed for retail/office. 44 Acres INTERSTATE Acres Area of Focus Future SCUC ISD High School 25 A 103 Acres Acres 85 Acres INTERSTATE 35 Area of Focus S O U R C E S CoStar Quarterly Data (Q Q for Industrial, Office, & Retail) Schertz Planning & Zoning Division, What s Developing In Schertz online visualizer Schertz Development Services Department, Building Permit Data (April 1 June 30, 2018) Aerial development images provided by Colglazier Properties and EVO Entertainment 9

10 1400 Schertz Parkway, Building 2 Schertz, TX SchertzEDC.com