TEXAS SNAPSHOT, NOVEMBER 2006

Texarkana

Brewer

Another step up for the region’s transportation system is the upcoming renovation of the Interstate 30 freeway. “The Texas Department of Transportation has let contracts for the renovation of the Interstate 30 freeway, overpasses and frontage roads,” Brewer says. “This is the largest highway project in Texas and will have favorable impact on the area’s growth.”

Most of the area’s current commercial real estate growth is taking place in and around northwest Texarkana, due to the location of Central Mall and regional hospitals, according to Brewer.

On the retail side, several major developers have sparked activity in the market with their projects. Merchants Holding Company, for example, has developed Texarkana Pavilion, part of a 700,000 square foot master-planned development located at the northeast corner of I-30 and Highway 59. Tenants at the center include Old Navy, Bed Bath & Beyond, Best Buy and On The Border. Property Commerce, another significant developer in the marketplace, has developed Richmond Ranch adjacent to the Texarkana Pavilion. The center is anchored by Target, Home Depot and PetSmart. Kohl’s also has a 90,000-square-foot location under construction, which is scheduled to open in March 2007. The Kohl’s project will have room for an additional 200,000 square feet of retail. The development of Richmond Ranch, Texarkana Pavilion and the Kohl’s-anchored center have shifted focus to the area as retailers scramble for space. The new super-stores seem to bring in additional customers from the 19-county retail trade area as there is no noticeable decline in sales in the existing centers. The absence of regional shopping facilities in a 90 mile radius and the growth of the rural areas around Texarkana supports the new facilities.

Due to the emergence of developments such as Tex-arkana Pavilion and Richmond Ranch, national retailers are taking notice of Texarkana’s growing market. For example, Ross Dress for Less has leased 30,000 square feet in Town West Shopping Center, located across the street from Central Mall. At the same center, Hobby Lobby has taken 49,000 square feet in the old Target space. “T.J. Maxx, Staples, Gander Mountain, The Home Depot, Target, Best Buy, Old Navy and Bed Bath & Beyond are all relatively new in the market as well,” Brewer says.

In the coming years, the I-30 Corridor will continue to see rapid growth to the west because of the expansion of infrastructure with new lanes on I-30, one-way frontage roads that connect all the exits in Texarkana and new local streets with utilities and lighting. “We also expect growth on the Arkansas side of Texarkana because of the recently announced sports complex and relatively inexpensive land costs,” Brewer says. Texarkana has an stable economy that is supported by a balance between industry, agriculture, timber and transportation. The city has experienced relatively steady growth in the 2.7 percent range annually with little or no sudden slumps experienced in markets dependent on oil, for example. “We expect a bright future in Texarkana,” Brewer says.

— Jerry Brewer is broker/owner of NAI/American Realty Company/American Elite Mortgage Company in Texarkana, Texas.

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