Jennifer S. CowleyAssistant Research Scientist
Mukta NaikGraduate Research Assistant
Texas A&M University
July 2001
© 2001, Real Estate Center. All rights reserved.
Real Estate Market Overview
Longview-MarshallReal Estate Market Overview
Longview-Marshall
Real Estate Market Overview
Longview-Marshall
Population
Employment
Job Market
Major IndustriesBusiness Climate
Education
Transportation and Infrastructure IssuesPublic Facilities
Urban Growth PatternsMap 1. Growth Areas
Housing
Multifamily
Manufactured HousingSeniors Housing
Retail Market
Map 2. Commercial Building PermitsOffice Market
Industrial Market
Conclusion
Contents
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Real Estate Market Overview
Longview-Marshall
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MarshallLongview
Kilgore
White Oak
Hallsville
Nesbitt
Easton
Lakeport
Union Grove
Interstate 20
US Hwy 80
US
Hw
y 59
US
Hw
y 259
US
Hw
y 259
Jennifer S. CowleyAssistant Research Scientist
Mukta NaikGraduate Research Assistant
Real Estate Market Overview
Longview-MarshallReal Estate Market Overview
Longview-Marshall
Land Area of Longview-Marshall MSA1,773 square miles
Population Density (2000)118 people per square mile
Area Cities and Towns CountiesGregg
HarrisonUpshur
The City of Longview was namedby railroad surveyors noting theimpressive distance that could
be seen from the area. Longview waschosen as one of “America’s 50 HottestCities” by the January 2000 issue of Ex-pansion Magic magazine. Ranked 37th,it was the smallest city to make the list.
Longview also was named one of the“25 Great Locations in the SouthYou’ve Never Heard of in Your Life” bySouthern Business & Developmentmagazine. Its sister city, Marshall, isknown as the pottery capital of theworld.
The Longview-Marshall MSA is partof the area known as the East Texasoilfields. Kilgore had as many as 1,200oil derricks in the past, and in the1940s was capable of supplying theentire nation with petroleum. Todaythe area has a diversified economywith a growing distribution sector.
BettieCross Roads
DianaEast Mountain
EastonEnon
GilmerGladewater
GlenwoodGrice
HallsvilleHarletonHawkinsJonesvilleKarnackKilgore
LakeportLeigh
LongviewMarshallNesbittOre CityPritchett
ScottsvilleSimpsonville
UncertainUnion Grove
WaskomWhite OakWoodlawn
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Kelly Air Force Base, San AntonioPOPULATION
The Longview-Marshall MSA grew7.7 percent during the 1990s.The majority of the MSA’s popu-
lation is located in Gregg County,where Longview and Kilgore are lo-cated. However, Upshur County hasgrown at the fastest rate. The majorityof the growth has been occurring in the
Longview-Marshall MSA Population
Area Cities With 10,000 or More Residents
Growth 1990–2000City 2000 Population (in percent)
Longview 73,344 4.0Marshall 23,935 –4.1Kilgore 11,301 –0.3
Source: U.S. Census Bureau
County Population Growth
Growth 1990–2000County 2000 Population (in percent)
Gregg 111,379 6.1Harrison 62,110 8.0Upshur 35,291 12.5
Source: U.S. Census Bureau
county outside the city limits of the ma-jor cities of Longview, Marshall andKilgore. Longview was the third fastestgrowing city in East Texas after Tylerand Texarkana.
The projected growth for the MSA ismuch less than the growth projectedfor the state as a whole. While the
Texas State Data Center projects apopulation of 224,142 for 2010, theTexas Water Development Boardprojects a population of 229,070, withan average growth rate of 0.8 percentper year.
Year Population
1990 193,9381991 196,0101992 197,4071993 199,3911994 200,8491995 202,9771996 205,3991997 207,2941998 208,5501999 209,4932000 208,780
Source: U.S. Census Bureau
3
Texas Metropolitan Area Population Change, 1990–2000 (in percent)
McAllen-Edinburg-Mission 48.5 Galveston-Texas City 15.1Austin-San Marcos 48.2 Tyler 15.5Laredo 44.9 El Paso 14.9Dallas 31.5 Corpus Christi 14.3Brownsville-Harlingen-San Benito 28.9 Victoria 13.1Brazoria County 26.1 Waco 12.9Houston 25.8 Texarkana 9.4Fort Worth-Arlington 25.1 Lubbock 9.0Bryan-College Station 25.1 Wichita Falls 7.8Texas 22.8 Longview-Marshall 7.7Killeen-Temple 22.6 Beaumont-Port Arthur 6.6San Antonio 20.2 Abilene 5.8Sherman-Denison 16.4 San Angelo 5.6Amarillo 16.2 Odessa-Midland 5.1
Source: U.S. Census Bureau
Longview-Marshall MSA Projected Population
Texas State Texas WaterYear Data Center Development Board
2005 217,227 —2010 224,142 229,0702015 227,899 —2020 230,045 245,957
Sources: Texas State Data Center and Texas Water Development Board
Household Composition
LongviewMSA Texas
Median household size (1990) 2.60 2.73
Population younger than 18(1999, in percent) 27.3 28.5
Population 65 and older(1999, in percent) 14.9 10.1
Source: U.S. Census Bureau
4
Ethnic Distribution(in percent)
Longview-Marshall MSA TexasEthnicity 1990 2000 1990 2000
White 73.9 71.4 60.8 52.4Hispanic 3.2 7.1 25.3 32.0Black 21.9 19.2 11.7 11.3Asian 0.6 0.5 0.3 2.7American Indian 0.3 0.3 1.8 0.3Other 0.1 0.1 0.1 0.1Two or more races* — 1.3 — 1.1
*For the 2000 Census, the Census Bureau changed the “race” options, allowing people to re-port their race as “other” or as two or more races.
Source: U.S. Census Bureau
The median household size inLongview-Marshall is slightlysmaller than the state average.
The MSA has a larger percentage ofcitizens older than 65 than the state av-erage, increasing the demand for medi-cal services within the area.
Texas is becoming more ethnicallydiverse. Since 1990, there has been an
increase in the percentage of Hispanic,black, Asian and American Indians,with the Hispanic population growingat the fastest rate. This trend is not aspronounced in Longview-Marshall.The MSA is predominantly white.Blacks are the second largest ethnicgroup, approximately three times largerthan the Hispanic population. The
2000 Census figures show that the His-panic population in the MSA doubledfrom 1990 to 2000.
Per capita income in the Longview-Marshall MSA was $22,872 in 1999.The state average was $26,834, ac-cording to the U.S. Bureau of Eco-nomic Analysis.
5
Longview-Marshall MSA Unemployment Rate(in percent)
Source: U.S. Bureau of Labor Statistics
Source: U.S. Bureau of Labor Statistics
EMPLOYMENT
Longview-Marshall MSA Employment
80,000
82,000
84,000
86,000
88,000
90,000
92,000
94,000
96,000
98,000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
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May
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May
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May
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May
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Employment Growth by Industry Longview-Marshall MSA Texas
Employment growth, 2000 (in percent) 1.3 3.2Unemployment rate, 2000 (in percent) 5.7 4.3New jobs in 2000 1,200 288,900Employment growth by sector, 2000 (in percent)
Services 3.6 4.7 Trade 2.2 3.1 Manufacturing –4.9 0.1 Mining 9.4 2.3 Finance, insurance and real estate 0.0 1.3 Construction 6.5 6.2 Government 3.4 1.7 Transportation, communications and public utilities 2.5 5.1
Sources: Texas Workforce Commission
Bergstrom Air Force Base, Austin
Top Ten Private Employers, Longview Top Ten Private Employers, Marshall
Sources: Longview Economic Development Corporation and Southwestern Electric Power Company, 2001
Texas Eastman CompanyChemicals2,770 employees (includes 525 full-time contractors)
Good Shepherd Medical CenterHealth care2,000 employees
LeTourneau, Inc.Heavy equipment1,300 employees
Trinity IndustriesRailway cars1,200 employees
SITELTelecommunications700 employees
Fleetwood Travel TrailerTravel trailer manufacturer514 employees
StemcoTrucking equipment320 employees
Crosby/Lebus Maufacturing Co.Load binders308 employees
Southwest SteelSteel castings306 employees
Norris CylindersHigh pressure cylinders254 employees
Marshall Regional Medical CenterHealth care420 employees
BlueCross-BlueShieldClaims processing center400 employees
Republic IndustriesCabinets350 employees
BICC Cable CompanyElectric cable320 employees
Marshall PotteryRed clay pots240 employees
Norit AmericasActivated carbon220 employees
East Texas Baptist UniversityEducation193 employees
Sabine Mining CompanyLignite mining180 employees
Louis A. Williams & AssociatesInsurance sales150 employees
Snider IndustriesLumber150 employees
7
During 2000, 1,200 jobs werecreated in the MSA, and non-agricultural employment
increased by 1.3 percent to 92,400, ac-cording to the Texas Workforce Com-
mission. The U.S. Bureau of Labor Sta-tistics reports total civilian employmentfor 2000 was 96,601. Employment inLongview-Marshall grew at a rateslower than the state as a whole for the
JOB MARKET
According to the Longview Eco-nomic Development Corpora-tion, about 530 new jobs were
added and $13.5 million in new invest-ment was made in the retail sector be-tween November 1999 and March2001. AAON, Inc., added 50 jobs in2001 to the 250 they reported in 2000.Fleetwood Industries hired 200 peopleto produce abrasive wheels. LongviewAsphalt added 50 new jobs and ex-panded its facility in 2000.
The new Home Depot in Longviewrepresents a $5 million investment andis expected to create about 130 jobs.Lone Star Steel is expected to hire anadditional 100 employees, bringing its
total to 1,600. Dana Corp. plans tobuild a new automotive componentmanufacturing plant in Longview Busi-ness Park that will employ 450 whencompleted.
In Marshall, American Wood Fibersplans to put up a plant that will employfive or six initially and as many as 20eventually. Taking advantage of a train-ing program announced in September2000, Black and Decker plans to add25 employees, and BICC General, acable company, will add 15. A newelectricity generating plant planned forHarrison County will employ 25 to 30.Universal Reel & Recycling will open awooden reel manufacturing facility,
employing ten in 2001.In Kilgore, Orangex-Intercast, an iron
casting unit, will employ 43. In Gilmer,350 construction jobs will be createdduring construction of the Constella-tion Power Plant that will have 25 per-manent jobs when completed.
In Longview, CCS/Meadow PinesHospital laid off 50 employees in June2000. At Alcatel, 17 employees werelaid off in July 2001. LeTourneau laidoff 25 employees in July 2001. Strate-gic Telecommunications closed in June2001, laying off 60. Trinity Industrieslaid off 180 in July and August of2001at the company’s Longview areaplants.
1990s. The average unemploymentrate in the MSA decreased to 5.7 per-cent in 2000, compared with 7 percentin 1999. These are the lowest unem-ployment rates in two decades.
Texas Metropolitan Area Employment Change, 1990–2000(in percent)
Austin-San Marcos 58.8 El Paso 15.4Laredo 40.3 Waco 14.3McAllen-Edinburg-Mission 35.8 Lubbock 14.0Dallas 30.4 Sherman-Denison 12.5Brownsville-Harlingen-San Benito 30.1 Longview-Marshall 12.2Bryan-College Station 29.2 Abilene 11.4Killeen-Temple 28.7 San Angelo 10.7San Antonio 28.6 Corpus Christi 10.3Fort Worth-Arlington 23.7 Galveston-Texas City 8.2Texas 23.3 Wichita Falls 7.8Tyler 22.9 Odessa-Midland 6.5Victoria 22.4 Texarkana 4.5Houston 22.1 Beaumont-Port Arthur 3.5Amarillo 18.6 Brazoria County 2.3
Source: U.S. Bureau of Labor Statistics, February 2001
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MAJOR INDUSTRIES
The trade and services sectors arethe largest components of theLongview-Marshall MSA’s
economy, each accounting for 29 per-cent of area jobs. The trade sectoradded 500 jobs in 2000. The servicessector saw a 3.7 percent increase inemployment, 800 more jobs than in1999. Health care is a key part of theservices sector. Many area health careproviders expanded during 2000.
The manufacturing sector is substan-tial in the Longview-Marshall MSA, ac-counting for 20 percent of the economy.This sector lost 900 jobs between 1999
BUSINESS CLIMATE
and 2000, primarily because of the clo-sure of Stroh’s Brewery.
Employment in the construction andtransportation, communications andpublic utilities sectors was up by 5.9percent and 5.3 percent, respectively.Government employment was up by400 jobs between 1999 and 2000.Three hundred of those jobs were in lo-cal and state government. Mining em-ployment increased by 300 jobs in2000.
According to the Texas AgriculturalExtension Service, hay is the largestagricultural crop in Gregg County, ac-
counting for 37 percent of agriculturalreceipts between 1997 and 2000; tim-ber and beef accounted for 42 and 17percent of receipts, respectively. InHarrison County, timber and beef ac-counted for 48 and 28 percent of re-ceipts, respectively. In Upshur Countybetween 1997 and 2000, milk ac-counted for 27 percent of receipts, beef31 percent and timber 30 percent. For2001, agricultural receipts are ex-pected to total $85 million in the MSA,up 0.3 percent from 2000.
Tax Rates, 2000
Tax Rate per Tax Rate perTaxing Entity $100 Valuation Taxing Entity $100 Valuation
City of Longview $0.52 City of Marshall $0.50School District 1.47 School District 1.36County 0.25 Galveston County 0.37Total $2.24 Total $2.23
Sources: Gregg and Harrison County Appraisal Districts
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Longview-Marshall MSA Retail Sales
Year Total Sales Sales per Capita
1990 $1,554,207,765 $8,0141991 1,584,723,938 8,0851992 1,705,448,782 8,6391993 1,798,067,235 9,0181994 1,923,171,254 9,5751995 2,106,574,875 10,3781996 2,284,632,740 11,1231997 2,302,104,090 11,1071998 2,287,813,040 10,9451999 2,417,226,267 11,5702000 2,639,166,714 12,641
State Average 2000 $12,612
Source: Texas Comptroller’s Office
The sales tax rate is 8.25 percentin Longview, Marshall andKilgore. The hotel-motel tax rate
is 13 percent in both Longview andMarshall.
Longview encourages firms to bringnew jobs to the area through cash in-centive programs. These incentives canbe as much as $8,000 per job whencombined with state incentives, if cer-tain criteria are met. Longview has a483-acre industrial park.
Marshall’s Center for Applied Tech-nology has a business incubator on the
Texas State Technical College campusthat opened in October 1999. The cen-ter helps small start-up technologybusinesses by providing services andlow rent.
Marshall's half-cent sales tax for eco-nomic development generates approxi-mately $1 million per year. TheMarshall Economic Development Cor-poration owns and operates theMarshall Business Park, a 600-acre sitewithin the city. This site has highwayaccess and is served by rail, gas, water,sewer and electricity. Marshall also of-
fers tax abatements, enterprise zonesand other economic incentives.
Kilgore is developing a 512-acre in-dustrial park with highway and rail ac-cess. The city also has an economic de-velopment sales tax and an enterprisezone. Gilmore, the county seat ofUpshur County, invested $335,000 inits Main Street Program.
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EDUCATION
Fall 2005 2010School 2000 (estimated) (estimated)
Kilgore College 4,000 3,939 3,930East Texas Baptist University 1,402 n/a n/aLeTourneau University 1,242 n/a n/aWiley College 552 n/a n/aTexas State Technical College - Marshall 511 n/a n/a
Sources: Educational institutions and the Texas Higher Education Coordinating Board, January 2001
Educational Level, Persons Age 25 and Older(in percent)
Longview-Level of Education Marshall MSA Texas
High school graduate 29.3 25.6Some college, no degree 22.2 21.1Associate’s degree 6.5 5.2Bachelor’s degree 10.5 13.9Graduate or professional degree 5.4 6.5
Source: U.S. Census Bureau, 1990
Local College and University Enrollment
Kilgore College, a two-year com-munity college, plans to builda Kilgore College-Longview
Cosmetology building adjacent to thecollege’s current facility in Longview.The Kilgore College Rangerettes, adance and drill team, are known inter-nationally for their high-kick routines.
Longview’s LeTourneau University isundertaking a $5 to $6 million projectto build a 53,000-square-foot technol-ogy center for the engineering, engi-neering technology and natural sciencedegree programs. A 20,000-square-foot dormitory complex consisting offour buildings is planned.
Texas State Technical College (TSTC)in Marshall offers 13 associate degreeprograms. TSTC- Marshall added twoassociate degree programs in fall 2000— software engineering technologyand environmental health and safetytechnology compliance. They alsoadded a number of new certificate pro-grams in the fields of chemical technol-ogy, computer systems networking, in-dustrial maintenance and dieselequipment modifications technology.
Wiley College is a historically blackinstitution in Marshall. Both Wiley andEast Texas Baptist University inMarshall are four-year liberal arts insti-tutions. East Texas Baptist Universityplans to break ground in summer 2001on a 200-bed apartment-style housingfacility for students.
Marshall ISD provides education to6,600 students and employs 800people. Longview ISD is planning anew administration complex on YoungStreet.
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TRANSPORTATION AND INFRASTRUCTURE ISSUES
The Longview-Marshall MSA islocated along I-20 in northeastTexas. The area is also served by
U.S. Highways 59, 80 and 259 andState Highways 31, 43, 149, 154, 155,271, 322 and 300. In Kilgore, construc-tion has begun on a $26 million loopoff U.S. 259 to the east of the city northof Stone Road.
Rail service in the MSA is providedby Union Pacific, Northern Burlington-Santa Fe and Texas Northeastern.Amtrak provides passenger servicefrom Longview. In May 2000, Amtrakbegan offering service in Gilmer.
The Gregg County Airport is servedby American Eagle. Passenger boardings
in 2000 increased by 11.1 percent. Atask force has been created to findways to increase use of the local air-port. The airport has a 10,000-foot run-way that can serve as an alternate land-ing site for NASA’s space shuttles.
According to the State Water Plan,Longview and Marshall are prepared tomeet their water needs through 2050.Longview receives water from LakeCherokee and the Sabine River throughLake Fork. The total quantity of waterthe city receives from these sources is56,547 acre-feet per year. Longviewholds a contract for water from Lake O’
the Pines but has not yet needed thatresource. In May 2000, ground wasbroken on a $35 million water treat-ment plant for Lake O’ the Pines. Theproject will provide Longview withdrinking water for the next 100 years.
Marshall receives water from CaddoLake; Kilgore receives water from theCarrizo-Wilcox Aquifer and the City ofLongview.
A landfill opened in May 2001 onU.S. Highway 80 between Marshalland Hallsville.
1998 1999 2000
Gregg County Airport 26,373 30,092 33,452
Source: Gregg County Airport
Airline Boardings
PUBLIC FACILITIES
The Longview Partnership is anumbrella organization includingthe Longview Chamber of Com-
merce Downtown Development Corp.and the Longview Convention andVisitors Bureau. The partnership isplanning a performing arts center,arena and other enhancements toLongview’s Maude Cobb Conventionand Activity Center and Longview Fair-grounds Complex.
The City of Longview acquired an of-fice building at 313 West Tyler Streetfor $145,000. The 6,837-square-footbuilding will house the LongviewDrug Task Force and the housing and
community development offices,which are currently located in theAtrium.
Longview plans to invest $3 millionin its park system. A softball complexwill be built on FM 1845 on the QuailFarm. Improvements will be made atthe Longview Swim Center and Ingramand Timpson Parks. The Airport Parkand City Park in Marshall cover 64acres and have a number of sports andrecreational facilities. The city is an-nexing 96 acres for Lear Park. The parkwill have soccer, softball and baseballfields. Two city pools were renovatedin 2001.
In Gilmer a skate park is planned atthe Yamboree Fairgrounds on U.S. 271.
The Harrison County Historical Mu-seum in Marshall houses a number ofartifacts and exhibits from Marshall’srich history. The Michelson Museum ofArt is a permanent collection of theworks of artist Leo Michelson.
The Marshall Civic Center offers58,000 square feet of multipurposespace. The Marshall Theater seats1,608 and has state-of-the-art facilities.Marshall's historic past and scenic ter-rain have attracted a number of filmmakers to the area.
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Map 1. Growth Areas
Source: Real Estate Center at Texas A&M University
Longview, TexasCensus PlaceHighwayInterstate Highway
US 80
SH 300
SH 281
SH 281
SH 31FM 1845
SH 502
I 20
US 259
Retail
Retail
Office
Single Family
Single Family
URBAN GROWTH PATTERNS
Map 1 shows growth corridorsin Longview. The primary re-tail corridor is along Loop
281 between Bill Owens Parkway andJudson Road. Growth is expected to
continue in the industrial parks. Resi-dential growth is concentrated in thenorth and northwest portions of thecity.
In Marshall, single-family housinggrowth is expected in the south andeast. Retail growth is occurring alongU.S. 59 near both U.S. 80 and I-20.
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Longview-Marshall MSA Single-family Permits(in units)
Source: U.S. Census Bureau
HOUSING
Housing Affordability – First Quarter 2000
Percent ofHouseholds THAI for
That Can Afford First-timeMedian-priced Home THAI* Homebuyers
Longview-Marshall MSA 63 1.39 1.06
*The THAI is the ratio of median household income to the income required to buy the median-priced home using currently available mortgagefinancing. Standard financing is a 30-year loan covering 80 percent of the cost of the home. A THAI of 1.00 indicates that the median householdincome is just enough to qualify for a loan sufficient to purchase the median-priced home.
Source: Real Estate Center at Texas A&M University
0
100
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Source: Real Estate Center at Texas A&M University
Average Sales Price of Single-family Home,Longview-Marshall
Single-family Home Sales Volume, Longview-Marshall(in units)
Source: Real Estate Center at Texas A&M University
$0
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Price Distribution of MLS Homes Sold in Longview-Marshall(in percent)
Source: Real Estate Center at Texas A&M University
Price Range 1997 1998 1999
$59,999 or less 27.1 30.1 27.460,000 – 79,999 24.0 20.1 20.280,000 – 99,999 17.1 16.6 16.8100,000 – 119,999 10.6 10.7 11.2120,000 – 139,999 8.3 7.3 7.4140,000 – 159,999 4.4 5.3 5.1160,000 – 179,999 3.1 2.6 3.7180,000 – 199,999 1.8 1.8 2.4200,000 – 249,999 2.0 2.9 2.1250,000 – 299,999 1.1 1.1 2.0300,000 and more 0.7 1.4 1.8
During 2000, 201 single-familypermits were issued in the MSAcompared with 230 permits in
1999. In the first quarter of 2001, 38new homes were permitted.
The City of Longview permitted 117single-family homes in 2000 and 38single-family homes in the first quarterof 2001. Two permits were issued forduplexes in 2000.
In Longview, the majority of residen-tial growth is taking place north andnorthwest of the city. Waterford Parkon McCann Road is a development of51 single-family townhouse lots com-pleted in 2000. Big Woods North unittwo is a 33-lot subdivision under con-struction. Eastwood Addition unit oneis a 26-lot subdivision. Fairway Oaksunit one will have 62 lots and WestHawkins unit two is under construction.
Hyde Park is a new subdivision at thenortheast corner of Eden Drive and
Garner Lane in Longview. D&W De-velopment is developing eight residen-tial lots nearby. Heritage Point is an 11-lot subdivision in the planning stages.Dundee Place phase two is a 24-lotsubdivision. Construction is planned tostart in summer 2001. Shady Creekphase one is an 11-lot subdivision onHeritage Boulevard that was platted in2000. Crescent Lake Estates is a 25-lotgated subdivision. Construction ofhomes began in April 2000. Anothergated community, Thorntree, will have20 two-acre lots priced at approxi-mately $100,000 each.
Longview’s planning department re-ports numerous small subdivision de-velopments in the extraterritorial juris-diction of the city. Cottonplace willhave 17 townhouse lots on the borderof Gregg and Harrison counties.
The Longview City Council passed aplan to promote residential construc-tion in south Longview. Incentives tolocate in this area include exemptionof water and sewer tap fees, permit feesand the possibility of free demolition ifan existing building is removed and an-other is constructed in its place. Thecity may also sell lots that are tax delin-quent for below-market value.
The City of Marshall issued 22single-family building permits during2000; six single-family permits were is-sued from January to April 2001. Themajority of these homes are on the eastside of the city. In south Marshall alongSouth Washington and south ofOakley, a new subdivision is being de-veloped. The first phase of the projectis expected to have 75 lots.
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MULTIFAMILY
Longview-Marshall MSA Multifamily Building Permits(in units)
Source: U.S. Census Bureau
Longview-Marshall Apartment Statistics, March 2001
Texas MetroLongview Average
Average rent per square foot $0.55 $0.76Average rent for units built since 1990 $0.34 $0.97Average occupancy (in percent) 95.2 95.7Average occupancy for units built since 1990 (in percent) 100 95.6
Source: Apartment MarketData Research
No new multifamily units werepermitted in 2000 in theLongview-Marshall area; 186
permits were issued in 1999. In the firstquarter of 2001, no new multifamilyunits were permitted, according to theU.S. Census Bureau. Rents in the MSAare substantially below the state aver-age, although occupancies are not. Oc-cupancy rates rose 0.7 percentagepoints between June 2000 and March
2001. Occupancy rates in units builtsince 1990 remained at 100 percent.Rents rose one cent overall and weredown eight cents for newer units, ac-cording to Apartment MarketData Re-search. In the first quarter of 2001, thecity of Marshall issued a permit for anapartment complex.
The $6.75 million Highland Villageapartment project was completed in2000 on FM 1845 west of Estes Park-
way in Longview. The 37-buildingcomplex has 144 units and received$840,000 in federal tax credits fromthe Texas Department of Housing andCommunity Affairs because it willhouse lower-income families.
A 50-unit apartment complex is pro-posed on the east side of Longviewalong Highway 2208. The project willcost about $2 million.
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SENIORS HOUSING
An NBA-Page Place retirementcenter will be constructed onPage Road in Longview. In
Kilgore, the Harmony House, an as-sisted-living center for ambulatory resi-
MANUFACTURED HOUSING
Longview-Marshall MSA Manufactured Home Sales
Proportion of NewManufactured Single-family HomesHomes Sold (in percent)
1997 767 74.51998 791 75.41999 770 77.02000* 489 82.4
*Through third quarter 2000
Source: Texas Manufactured Housing Association
The majority of new single-familyhomes in the MSA are manufac-tured homes. In Longview, no
manufactured home subdivisions orparks were permitted in 2000. Manu-factured homes are increasingly popu-lar because of their improving image
and affordability. For an average priceof $37,500, an individual can purchasea 1,380-square-foot home, excludingthe cost of land, according to theManufactured Housing Institute. Themedian income of manufactured homeowners is $24,500.
dents, opened in 2000. The 46 unitswill rent for $1,595 to $1,995 permonth, including food, housekeepingand transportation services. An as-sisted-living facility is being planned in
A concentration of manufacturedhome communities is located alongU.S. 80 between Longview and WhiteOak. Many manufactured home resi-dents are relocating to a park northwestof the city near Highway 300 andGrayson Drive.
the northeast part of Longview atGilmer Road along Highway 300. The11,172-square-foot facility will cost$500,000.
18
Building permits issued in Long-view in 2000 were twice thenumber issued in 1999. Long-
view issued 371 new and remodelingcommercial and industrial permits.
Longview is becoming increasinglyimportant as a regional retail area.Commercial building permit locationsare shown on Map 2.
The Texas Restaurant Associationforecasts the Longview-Marshall MSA’stotal restaurant sales will grow by 1.3percent to $199.2 million during 2001.A Fazoli’s fast-food Italian restaurantopened in 2000 on Judson Road inLongview. Taco John’s opened onWest Loop 281 and Texas RoadhouseRestaurant opened in 2000 on EastLoop 281.
Two Taco Bell and Kentucky FriedChicken combination stores opened onJudson Road and Estes Parkway. ASonic was completed on South HighStreet in 2000. A Tony Roma’s Rib Grillis planned on McCann Road. GreenStreet Deli and Heavenly Delights, abakery serving ice cream and lightlunches, opened in downtownLongview.
In Marshall, a smaller-sized Luby’scafeteria with a drive-through window
RETAIL MARKET
Hotel Occupancy and Rental Rates
1999 2000Longview- Longview-
Marshall MSA Texas Marshall MSA Texas
Occupancy rate (in percent) 67.1 64.1 71.4 65.7Average daily rental rate $61.44 $84.08 $57.92 $86.45
Source: PKF Consulting
2000
Occupancy rate (in percent) 90+Rental rates (per square foot) $7–$10
Longview Retail Market
Sources: Frank Chaney, Coldwell Banker Commercial
was completed during 2000. AWendy’s is planned for 2001.
Longview, Marshall and Kilgore eachhave a 13 percent hotel tax rate. Aver-age rental rates have declined since1999, while hotel occupancies haveincreased. A $2.5 million, 80-roomWingate Inn opened in 2000 inLongview off North Fourth Street andLoop 281. Holiday Inn Express alsoopened an 89-room hotel on S. AccessRoad near I-20. Another hotel isplanned in the south part of Longviewalong FM 1845. The $3.4 million struc-ture will have 90 rooms. In Marshall, a68-room Hampton Inn opened inMarch 2000.
A T.J. Maxx opened in LongviewPlaza in late 2000. The 27,000-square-foot store cost more than $1 million.Old Navy opened in the Plaza in No-vember 2000. Nearby, BooksAMillion,Office Max and Michael’s opened inthe building that Lowe’s vacated whenit moved to a larger facility on NorthFourth Street.
Super 1 Foods opened on High Streetin May 2000. Yes!Less opened in July2000. The 17,000-square-foot grocerystore is located on Eastman Road.
Longview Bank and Trust opened abranch in north Longview at McCannRoad and Hawkins Parkway. HiberniaNational Bank’s second Longviewbranch opened on Loop 281 West inJune 2000.
Home Depot opened a store on Loop281 west of Fourth Street in early 2001.O’Reilly’s Auto Parts opened twostores in Longview in 2000.
Wal-Mart is planning a newsupercenter at Gilmer and Reel Roads.Academy Sporting Goods and OldNavy have announced plans to open inLongview. The Academy SportingGoods store is under construction onLoop 281 and will open in September2001 in a 52,000-square-foot building.An 8,000-square-foot Family Dollarstore is being built on Gilmer Road.
First Baptist Church is planning addi-tions worth $2.5 million in 2001. FirstUnited Methodist Church in Longviewhas broken ground on a $5.6 millionexpansion and renovation project.
Segars Lawn & Garden opened a15,000-square-foot store on U.S. 259North in July 2001.
19
OFFICE MARKET
The Longview Regional MedicalCenter underwent a $3.6 millionexpansion that almost doubled
the capacity of the emergency room,added exam rooms and a medicationroom and enlarged nursing stations
and waiting areas. The first phase of theproject has been completed.
Good Shepherd Medical Centerbroke ground in July 2000 on a $37million addition that will have fourfloors and house as much as $22 mil-
lion in new equipment. In February2000, the existing facility averaged 97percent occupancy.
A medical office complex is plannedin Longview on North Fourth Street,south of Pegues Place and west of
Longview April 2000
Occupancy rate (in percent) 90–92Average rent (per square foot) $9–$12 full service
Sources: Frank Chaney, Coldwell Banker Commercial
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Map 2. Commercial Building Permits, 2000
Source: Longview Building Permit Office
Longview, TexasCensus PlaceHighwayInterstate Highway
� Retail
� Office
US 80
SH 300
SH 281
SH 281
SH 31FM 1845
SH 502
US 259
I 20
20
INDUSTRIAL MARKET
The Longview-Marshall industrialmarket is dominated by lightmanufacturing, with some distri-
bution. Frank Chaney of ColdwellBanker Commercial estimates indus-trial property rental rates range from$1.20 to $3 per square foot.
The 483-acre Longview BusinessPark, located at I-20 and U.S. 259, un-derwent road and infrastructure im-provements in 1999. The LongviewEconomic Development Corporation(LEDCO) built a speculative 100,000-square-foot shell building to encouragecompanies to relocate to the park. ANeiman Marcus Distribution Centeranchors the park.
The former Stroh’s Brewery has beensold to private investors who intend todivide and sublease the property asmultitenant warehouse-distributionspace. The 800,000-square-foot build-ing is on West Cotton Street.
A freight forwarder plans to build a100,000-square-foot warehouse-officebuilding in the foreign trade zone inthe industrial park at Gregg CountyAirport.
AAON, Inc., a manufacturer of air-conditioning and air-handling rooftopunits, recently completed a 90,000-square-foot addition costing $8 million.
Dana Corp. plans to build an auto-motive component manufacturingplant on a 68-acre tract in LongviewBusiness Park. The 211,000-square-foot, $29 million plant will employ 450people when completed.
A $1 million ABC warehouse is un-der construction.
The area around Gregg County Air-port is developing rapidly. Copart, Inc.,has a 42-acre, $1.2 million site beingdeveloped for a vehicle storage facilityfor insurance companies.
Marshall's business park has 600acres, highway access and is servicedby rail, gas, water, sewer and electric-ity.
In February 2001, American WoodFibers announced it plans to open an11,000-square-foot plant on 19 acresin Marshall.
A $200 million, 440-megawatt co-generation electric power plant wasscheduled for completion during thefirst quarter of 2001 in southeastHarrison County. The Eastex Cogenera-tion Project will provide steam andelectricity for Eastman Chemical’s pro-duction processes, allowing thecompany’s coal-fired boilers to beeliminated. Central and SouthWest En-ergy, Inc., is building the facility on the
north end of Eastman’s 6,000-acre site.An energy consortium is consideringHarrison County for a $240 milliongas-fired electrical generating plant.
The 512-acre Kilgore Business Parkis under construction on FM 349 eastof the Texas Highway 31 and U.S. 359intersection and adjacent to the UnionPacific Railroad tracks. Distributioncompanies will be targeted in an effortto diversify the area’s economy beyondoil-related industries.
The Kilgore Economic DevelopmentCorporation sold $2.9 million in bondsto fund the park’s infrastructure and an-other $2 million to construct a buildingshell to encourage future business de-velopment. The infrastructure is com-pleted and construction began in 2001.Orangex-Intercast, an iron casting unit,was to break ground in April 2001.
In Gilmer, a $200 million powerplant is planned on U.S. 271. The Con-stellation Power Development is underconstruction.
In Marshall, Universal Reel & Recy-cling will locate in a 17,000-square-foot building on FM 1998. The com-pany will employ ten in its wooden reelmanufacturing plant.
North Seventh Street. The 8,000-square-foot building will cost$700,000. Champion EMS has pur-chased land near the Good ShepherdMedical Center Clinic. The site willserve as the headquarters for thecompany’s 40 current employees andten new employees. Groundbreakingoccurred in June 2000 for the$870,000, 6,800-square-foot facility.
A 2,080-square-foot dental office isplanned on Gilmer Road in northwest
Longview. A 2,994-square-foot dentaloffice is planned south of I-20 in thesoutheast part of the city. A 13,855-square-foot health clinic is planned onMarshall Avenue close to downtown.The building will cost $850,000.
Greggton Business Park is plannedon South Ward Drive near WestMarshall Avenue in Longview. DarrEquipment invested $1.2 million innew office and warehouse space on
FM 1845, adding more than 26,000square feet.
A $7 million business park is planedoff McCann Road in north Longview.Cubix Software plans to develop a 45-acre tract. The first phase will include a20,000-square-foot building to housecomputer programming professionals.
A new 10,000-square-foot officestructure is being built on Moberly Av-enue in south Longview.
21
CONCLUSION
The Longview-Marshall MSA con-tinues to grow and diversify. TheMSA has a favorable location
along I-20 between Dallas-Fort Worth
701-25-1492
and Shreveport. Longview andMarshall are becoming increasinglyimportant as regional hubs for retailand medical services. The area’s strong
manufacturing segment is expected tocontinue expanding as LEDCO and theKilgore Business Park promote their in-dustrial facilities.