CM Report
Southlake Economic Update
City Manager’s Report
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This slide shows you the areas of our local economy that we regularly monitor. I’ll walk through some data highlights related to each of these over the next few slides. We’ll start
off with Labor and Employment
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Labor and Employment
Source: Texas Workforce Commission (LAUS)
Unemployment Rate - November 2016
13,559
Total Employment
40,992
Daytime Population Estimate
One of the indicators that we monitor is our unemployment rate.
As noted on this slide, Southlake’s unemployment rate is well below the national average. Additionally, we fare better
than the metroplex and Tarrant County. This has historically been the case, even during the recession.
Now we’ll take a look at our residential sector
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223
Permits Issued
$130.9M
Value Added
Southlake 2016 Residential Market Data
$759,499
Average Home
Sales Price
3.9
Months of Inventory
We issued 223 permits issued – slight reduction from 2015 which was just over 270. However, it is well above the 3 years prior to that which ranged from 105 to 197.
Additionally,
the value added from new residential construction was almost $131M which outpaces value added every year since 2010.
One of the key components of our economic vitality is the quality
and value of our housing stock. As noted on the slide, Southlake is currently enjoying a seller’s market, with average home sell prices approaching $760,000, and an inventory that’s
less than 4 months.
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And now let’s look at the Commercial Sector
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30
Construction Permits Issued
$50.5M
Value Added
Southlake 2016 Commercial Market Data
81.9%
Office Occupancy Rate
93.4%
Retail Occupancy Rate
76
New Businesses
2,232
Total Businesses
30 commercial permits were issued in 2016 which is slightly more (27) than was issued in the prior year. And
The value added from new commercial construction was over $50M. This
is a reduction from prior year, which was at about $77M but we do expect the current year to outperform both of these values considerably as the value from Granite and TD Ameritrade
will start to come online.
The City’s retail sector is performing well, with an occupancy rate approaching 94%. In looking at the spaces that are not filled, they do include some
larger locations such as the former Wal-Mart (59,012sf) and Fresh Market (21,742) sites.
I have heard that Wal-Mart is set to close early next month with a new owner and the team marketing
Park Village indicated that filling the Fresh Market space is top priority. We expect both of these spaces to be leased this year. If you back their numbers out, our occupancy rate
climbs to 95.5% (176,235 vacant sf)
The City’s office market occupancy is lower than you might expect, due largely to the vacancy of a couple of buildings: Vista at Solana (379,899
SF) and Granite (154,850 SF). If these buildings are pulled from the numbers…occupancy climbs to just over 93%. (93.37% (vacancy rate falls from 21.5% to 6.63%, (total vacant SF =
221,968).)
Having made this observation, it is important to note that we understand that the Granite development is having a lot of conversations about leasing their space and the
Vista at Solana was recently purchased by a new group who has invested a significant amount of money in upgrading that building to make it more marketable.
The City saw 76 new businesses
open in 2016 which is up just slightly from 71 in 2015.
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And finally, consumer spending and our sales tax trends
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Southlake
Sales Tax Trends
$14.4M
2016 General Fund Collections
3.3%
2016 vs. 2015
14.97%
2017 YTD vs. 2016
In 2016, we collected almost fourteen and a half million of general fund sales tax. That’s 3.3% more than the prior year. In the current year, we are currently trending about 15% above
collections for 2016.
And finally, I wanted to let you know that we are currently pursuing a product with Visa that will provide us with aggregate sales tax data each quarter that
will allow us to do a rich analysis of how and where travelers are spending their dollars in Southlake. It will include both domestic and international data which will help us better
target our marketing initiatives.
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Questions?
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Alison
One of the key components of our economic vitality is the quality and value of our housing stock. As noted on the slide, Southlake is currently enjoying a seller’s market, with
average home sell prices approaching $760,000, and an inventory that’s less than 4 months.
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Valuation added: represents that which has been constructed rather than just permitted
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The City’s retail sector is performing well, with a vacancy rate well below 10%. You’ll notice that we’ve recently dipped below the performance of the DFW Market but if you look at
the numbers, our vacancy includes some larger spaces such as the former Wal-Mart and Fresh Market sites.
I have heard that Wal-Mart is set to close early next month with a new owner
and the team marketing Park Village indicated that filling the Fresh Market space is top priority. We expect both of these spaces to be leased this year. If you back their numbers
out, our occupancy rate climbs to 95.5% (176,235 vacant sf)
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Ken:
The City’s office market occupancy is lower than you might expect, due largely to the vacancy of a couple of buildings. If these buildings are pulled from the numbers…vacancy
rate falls from 21.5% to 6.63%, (total vacant SF = 221,968).
Having made this observation, it is important to note that we understand that the Granite development is having a lot
of conversations about leasing their space and the Vista at Solana was recently purchased by a new group who has invested a significant amount of money in upgrading that building to
make it more marketable.
National numbers?
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