TEXAS SNAPSHOT, JUNE 2010

Lubbock Market

David Petr of Lubbock’s Economic Development Alliance recently sat down and interviewed Marc Farmer, the agency’s business recruitment director about Lubbock. Their conversation touched on the current state of the market across all product types.

Petr: Tell me a little about the current state of the overall Lubbock commercial real estate market.

Farmer: The current market is picking up; we were really never affected  by the recession like other parts of the United States. Vacancy rates remain low, and the properties that are on the market are being viewed and considered daily.

Tenants, for the most part, have remained steady, but some large retailers have moved out of the market due to circumstances not involving Lubbock (company-wide closings, etc). Landlords have remained optimistic. Some of them realize that the downturn has pinched both sides of the equation and have offered deals that will encourage tenants to move into vacant properties.

Petr: How is the sale velocity?

Farmer: From what we are told, sales are increasing and activity is vibrant. Sales should continue to improve over the next few months.

Petr: What major trends are affecting the market?

Farmer: One major trend affecting the market is companies’ desire to locate to smaller metro areas. More and more, we get calls from companies seeking a smaller area in which to do business. These firms are looking for a central U.S. location with all the amenities of larger metropolitan areas.

Petr: Will the recession have any long-term effect on how the market is developed?

Farmer: The recession may halt some speculative developments. However, with the exemption of a few locations, single-user strip centers and mixed-use projects continue to develop.

Petr: What needs to be done to encourage activity in the market?

Farmer: All community partners are joining forces. These organizations  have united to continue our economic development success. The city and its partners do a fantastic job working together when an opportunity presents itself. We all need to work together to win and retain projects.

Petr: What do you predict will be the major news in the Lubbock industrial market at the beginning of next year?

Farmer: The ground breaking of Verizon’s $30 million Data Center and Switching Facility will be major news. Hopefully, other projects in the pipeline, such as DPS’ $37 million Regional Headquarters and Forensics Lab, will generate buzz in the marketplace.

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