Harlingen-Brownsville-Harlingen- Sansan Benitobenito

RealReal EstateEstate MarketMarket OverviewOverview Brownsville-Harlingen-Brownsville-Harlingen- SanSan BenitoBenito

Jennifer S. Cowley Assistant Research Scientist Mukta Naik Graduate Research Assistant

Texas A&M University

Contents

2 Population 5 Employment 9 Job Market 10 Major Industries Business Climate

13 Education 14 Transportation and Infrastructure Issues 15 Urban Growth Patterns 16 Map 1. Growth Areas, Brownsville Map 2. Growth Areas, Harlingen

17 Public Facilities Housing

21 Multifamily 22 Manufactured Housing 23 Retail Market 24 Map 3. Commercial Building Permits, Harlingen 25 Office Market 26 Industrial Market 27 Conclusion RealReal EstateEstate MarketMarket OverviewOverview Brownsville-Harlingen-SanBrownsville-Harlingen-San BenitoBenito Jennifer S. Cowley Assistant Research Scientist Mukta Naik Graduate Research Assistant

Rio Hondo

Harlingen South Padre Island

San Benito Bayview Rangerville US 77

Los Fresnos SH 100 Port Isabel

Rancho Viejo

SH 48 US 281

Brownsville

Area Cities and Towns County Land Area of Brownsville MSA Brownsville Rio Hondo Cameron 954 square miles Combes San Benito Harlingen Santa Maria Population Density (2000) La Feria Santa Rosa 351 people per square mile La Paloma South Padre Island Rancho Viejo

he Brownsville-Harlingen-San by Mexico to the south, the McAllen ing to the Census Bureau, the MSA was Benito Metropolitan Statistical MSA to the west and the Gulf of the 28th fastest growing in the country T Area (MSA) is at the southern- Mexico to the east. Corpus Christi lies and fifth fastest growing in the state be- most tip of Texas. The MSA is bordered about 150 miles to the north. Accord- tween 1990 and 2000.

1 POPULATION Kelly Air Force Base, San Antonio Brownsville MSA Population Year Population 1990 261,693 1991 269,166 1992 277,166 1993 287,950 1994 296,948 1995 304,459 1996 311,522 1997 317,719 1998 324,046 1999 329,131 2000 335,227 Source: U.S. Census Bureau

Area Cities With 10,000 or More Residents Growth 1990–2000 City 2000 Population (in percent) Brownsville 139,722 21.4 Harlingen 57,564 20.4 San Benito 23,444 12.2 Source: U.S. Census Bureau

etween 1990 and 2000, the pected to continue to be in the north- the MSA’s population predicted to Brownsville MSA’s population ern portion of the city. grow 3 percent per year through 2020, Bhad a growth rate of more than The Brownsville-Harlingen area’s according to the Texas State Data Cen- 2.6 percent per year. In Brownsville, population is growing at a rate signifi- ter. The Texas Water Development the MSA’s fastest growing city, the ma- cantly faster than the state as a whole. Board predicts 2.1 percent growth per jority of growth has been and is ex- That trend is expected to continue with year between 2000 and 2020.

2 Texas Metropolitan Area Population Change, 1990–2000 (in percent)

McAllen-Edinburg-Mission 48.5 Galveston-Texas City 15.1 Austin-San Marcos 48.2 Tyler 15.5 Laredo 44.9 El Paso 14.9 Dallas 31.5 Corpus Christi 14.3 Brownsville-Harlingen-San Benito 28.9 Victoria 13.1 Brazoria County 26.1 Waco 12.9 Houston 25.8 Texarkana 9.4 Fort Worth-Arlington 25.1 Lubbock 9.0 Bryan-College Station 25.1 Wichita Falls 7.8 Texas 22.8 Longview-Marshall 7.7 Killeen-Temple 22.6 Beaumont-Port Arthur 6.6 San Antonio 20.2 Abilene 5.8 Sherman-Denison 16.4 San Angelo 5.6 Amarillo 16.2 Odessa-Midland 5.1 Source: U.S. Census Bureau

Brownsville MSA Projected Population Texas State Texas Water Year Data Center Development Board

2005 400,364 — 2010 450,485 405,463 2015 494,547 — 2020 540,240 476,992

Sources: Texas State Data Center and Texas Water Development Board

Projected Population Growth, 2000–2020 (in percent)

40 126.0 20 40.2

Brownsville-Harlingen-San Benito MSA Texas

Source: Texas State Data Center

3 Household Composition Brownsville MSA Texas

Median household size (1990) 3.57 2.73 Population younger than 18 (1999, in percent) 35.3 28.5 Population 65 and older (1999, in percent) 11.3 10.1

Source: U.S. Census Bureau

Ethnic Distribution (in percent) Brownsville MSA Texas Ethnicity 1990 2000 1990 2000

Hispanic 81.7 84.3 25.3 32.0 White 17.6 14.5 60.8 52.4 Black 0.3 0.3 11.7 11.3 Asian 0.2 0.5 0.3 0.3 American Indian 0.0 0.1 1.8 0.3 Other 0.2 0.0 0.1 0.1 Two or more races* — 0.3 — 1.1

* For the 2000 Census, the Census Bureau changed the “race” options, allowing people to report their race as “other” or as two or more races. Source: U.S. Census Bureau

he population of the Brownsville Cameron County’s location along panics are expected to make up 38 MSA is made up of a larger per- the border with Mexico in part ac- percent of the Texas population by the T centage of young people than in counts for the large Hispanic popula- year 2025. The per capita income for other areas in Texas. The MSA’s aver- tion in the MSA. The MSA’s Hispanic the MSA was $14,280 in 1999. The age household size is larger than the population is the fastest growing ethnic state average was $26,834, according to state average. group, as it is in Texas as a whole. His- the U.S. Bureau of Economic Analysis.

4 EMPLOYMENT

Brownsville-Harlingen-San Benito MSA Employment

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Source: U.S. Bureau of Labor Statistics

Brownsville-Harlingen-San Benito MSA Unemployment Rate (in percent)

20 18 16 14 12 10 8 6 4 2 0 May May May May May May Sept Sept Sept Sept Sept Sept January-95 January-96 January-97 January-98 January-99 January-00 January-01

Brownsville Harlingen

Source: U.S. Bureau of Labor Statistics

5 Brownsville

Top Ten Employers Top Ten Private Employers

Brownsville IndependentBergstrom School District Air Force Base,H-E-B Food Austin Stores Public education Retail grocery 6,400 employees 1,102 employees University of Texas – Brownsville Convergys Corp. Education Call center 1,646 employees 954 employees Cameron County Brownsville Medical Center Local government Health care 1,450 employees 925 employees H-E-B Food Stores Valley Regional Medical Center Retail grocery Health care 1,102 employees 728 employees Convergys Corp. AMFELS Call center Manufacturing 954 employees 652 employees Brownsville Medical Center Levi Strauss Health care Clothing manufacturing 925 employees 630 employees City of Brownsville Trico Technologies Local government Manufacturing 900 employees 548 employees Valley Regional Medical Center Wal-Mart Health care Retail 728 employees 538 employees AMFELS Horace Small Apparel Manufacturing Clothing manufacturing 652 employees 493 employees Levi Strauss Allison Manufacturing Clothing manufacturing Manufacturing 630 employees 403 employees

Source: Brownsville Economic Development Council

6 Harlingen

Top Ten Employers Top Ten Private Employers

Valley Baptist MedicalBergstrom Center Air Force Base,Valley Baptist Austin Medical Center Health care Health care 2,321 employees 2,321 employees Harlingen Consolidated Independent School District Fruit of the Loom School district Clothing manufacturing 2,286 employees 1,029 employees Fruit of the Loom Wal-Mart Superstore Clothing manufacturing Retail 1,029 employees 487 employees City of Harlingen H-E-B Food Stores Local government Grocery 554 employees 407 employees Wal-Mart Superstore Southwestern Bell Telephone Retail Telephone 487 employees 287 employees Texas State Technical College Q.C. Onics Higher education Electrical assembly 450 employees 280 employees H-E-B Food Stores Su Clinica Familiar Grocery Health care 407 employees 260 employees Rio Grande State Center Acetylene Oxygen Company Mental health Miscellaneous gases 370 employees 205 employees Southwestern Bell Telephone Sweezy Construction Telephone Construction 287 employees 203 employees Q.C. Onics Tex Steel Electrical assembly Steel doors and frames 280 employees 179 employees

Source: Harlingen Chamber of Commerce, first quarter 2001

7 Employment Growth by Industry Brownsville MSA Texas Employment growth, 2000 (in percent) 5.2 3.2 Unemployment rate (in percent) 8.7 4.3 New jobs in 2000 5,400 288,900 Employment growth by sector, 2000 (in percent) Services 8.2 4.7 Trade 4.3 3.1 Manufacturing –0.8 0.1 Mining n/a 2.3 Finance, insurance and real estate 2.6 1.3 Construction 13.5 6.2 Government 4.2 1.7 Transportation, communications and public utilities 5.8 5.1

Sources: Texas Workforce Commission

Texas Metropolitan Area Employment Change, 1990–2000 (in percent)

Austin-San Marcos 58.8 El Paso 15.4 Laredo 40.3 Waco 14.3 McAllen-Edinburg-Mission 35.8 Lubbock 14.0 Dallas 30.4 Sherman-Denison 12.5 Brownsville-Harlingen-San Benito 30.1 Longview-Marshall 12.2 Bryan-College Station 29.2 Abilene 11.4 Killeen-Temple 28.7 San Angelo 10.7 San Antonio 28.6 Corpus Christi 10.3 Fort Worth-Arlington 23.7 Galveston-Texas City 8.2 Texas 23.3 Wichita Falls 7.8 Tyler 22.9 Odessa-Midland 6.5 Victoria 22.4 Texarkana 4.5 Houston 22.1 Beaumont-Port Arthur 3.5 Amarillo 18.6 Brazoria County 2.3

Source: U.S. Bureau of Labor Statistics, February 2001

he unemployment rate in the ment in the MSA was at relatively low 109,200, according to the Texas Brownsville-Harlingen-San levels in 2000, dropping by 1.1 per- Workforce Commission. The U.S. Bu- T Benito MSA has historically centage points from 1999 to 8.7 per- reau of Labor Statistics reported civil- been much higher than the state aver- cent in 2000, according to the Texas ian employment to be 118,189 in age because of high immigration Workforce Commission. During 2000, 2000. growth rates. However, unemploy- nonagricultural employment reached

8 JOB MARKET

n Brownsville, Nardi Italia, an Italian makes mattresses for pets, will be em- have agreed to provide the park with firm that makes wooden steering ploying 40 additional people. Dexter $150,000 in incentives. The park had Iwheels, is joining forces with Valley Adhesive and Coating Systems, auto- been closed since 1995. Trucking Inc. and will hire 350 people. motive suppliers, will hire ten more A pipe fabrication company, Indus- Operations began in February 2000. workers, and Mervis metal recyclers trial Fab, is opening and will employ Tella Tool and Manufacturing opened will hire eight additional employees. 100 people. in fall 2000 and employs 75. Neoplan, The developer of the expanded Sun- Advanced Call Center Technologies a bus manufacturer, will employ 600 rise Mall and Sunrise Commons ex- opened in Harlingen in June 2000, em- people when it opens in 2001. The pects the retail facilities to create 620 ploying 300. Tadim is expanding, add- firm makes components for the aero- new jobs. T&C Stamping expanded, ing 60 employees. RMH Teleservices space, telecommunications, automo- adding 30 employees. Excel Plastics opened a call center in 2000 employ- tive and medical industries. expanded, adding 40 employees. ing 500. Titan International tire company Loera Customs Brokerage expanded, In San Benito, Penske Logistics opened in 2000 employing 370, then adding 45 employees in Brownsville. added 200 jobs in 2000. South Texas laid off 29 employees in July 2000. In- In Harlingen, Sol Communications is Shrimpers opened in May 2000, em- dustrial Fab opened a pipe fabrication expected to bring 100 new jobs. Fox ploying 200. plant employing 100. New Process Valley Molding Inc., a supplier to auto- During 1999, two gambling boats Steel opened employing 50. VF motive maquiladoras (manufacturing began operating in the MSA. Casino Imagewear opened a distribution facil- plants) in Mexico, will hire 25 and Del Mar, a 420-foot vessel, employed ity in Brownsville in 2000. The com- build a 15,000-square-foot manufac- 140 but has since set sail for a more lu- pany employs 50. turing plant. Tennyson Group is a crative location. A smaller ship, Ca- Scientific Molding Corporation computer firm that will hire 20 em- sino Padre, can carry as many as 320 plans to open a plastic injection mold- ployees, ten in each of the firm’s first passengers and plans to remain in op- ing operation in Brownsville in Febru- two years of operation. Valley Baptist eration. A Schlitterbahn waterpark ary 2002. Uniexcel Chemical Solu- Hospital added a pediatric center em- opened in May 2001 on South Padre tions plans to build a manufacturing ploying 40 in February 2001. Island. plant at the Port of Brownsville in In Harlingen, Valley Race Park re- Builder’s Square and Lozano Auto 2001. The facility will result in 300 opened in 2000. The racetrack hired Parts went out of business in Browns- jobs by 2004. 23 full-time and 23 part-time employ- ville. South Texas Hospital is closing Trico expanded in 2000, creating an ees for its simulcast-betting and dog- its inpatient clinic in Harlingen, cut- additional 100 jobs. FlexiMat, which racing seasons. City commissioners ting employment for 70 people.

9 MAJOR INDUSTRIES

he major employment sectors in ment and consists of electronics, ap- expected to rise to $179.5 million. the Brownsville-Harlingen-San parel, metal fabrication and food pro- Nursery products (18.6 percent), cot- T Benito MSA are services, which cessing. This sector lost 100 jobs in ton (14.4 percent) and sorghum (6.9 accounts for 27 percent of the 2000, according to data from the Texas percent) were the area’s primary crops. economy; government, which ac- Workforce Commission. Aquaculture and fishing accounted for counts for 24 percent; and trade, 24 Maquiladoras are important to the 42.8 percent of receipts. percent. The services sector has a large area’s employment levels and trade. The Rio Grande Valley has been suf- medical services component. The ser- Matamoros, the Mexican city across fering effects from the drought. In vices sector grew by 8.2 percent, add- the river from Brownsville, announced Brownsville, rainfall was 3.57 inches ing 2,600 jobs, while the trade sector the addition of five new maquiladora below average in 1999. In the Laguna grew by 4.3 percent, adding 1,100 plants in its industrial park. The new Atascosa Wildlife Refuge, rainfall was jobs in 2000. The construction sector plants will create 6,000 additional almost ten inches below normal. Sugar posted strong job growth, adding 500 jobs. production in the valley is predicted to jobs during 2000. Agricultural receipts for 2000 totaled fall from 45,000 acres to only 27,000 The government sector is large, pri- $170 million for Cameron County, ac- acres because of the dry conditions. In marily because of border patrol and cording to the Texas Agricultural Ex- 1999, the Port of Harlingen shipped customs offices jobs. Manufacturing tension Service. In 2001, receipts are 46,545 tons of sugar and molasses. accounts for 12 percent of employ-

BUSINESS CLIMATE

Tax Rates, 2000 Tax Rate Tax Rate Tax Rate Taxing per $100 Taxing per $100 Taxing per $100 Entity Valuation Entity Valuation Entity Valuation

City of Brownsville $0.69 City of Harlingen $0.54 City of San Benito $0.67 School District 1.47 School District 1.55 School District 1.47 College 0.13 College 0.13 College 0.13 Cameron County 0.35 Cameron County 0.35 Cameron County 0.35 Total $2.64 Total $2.57 Total $2.62

Source: Cameron County Appraisal District

10 Brownsville-Harlingen-San Benito MSA Retail Sales

Year Total Sales Sales per Capita

1990 $1,557,169,328 $5,950 1991 1,672,729,723 6,214 1992 1,793,970,186 6,473 1993 1,946,553,004 6,760 1994 2,079,423,067 7,003 1995 1,928,108,028 6,332 1996 2,018,725,307 6,480 1997 2,139,324,827 6,733 1998 2,270,390,442 7,006 1999 2,439,175,471 7,411 2000 2,653,452,245 7,915 State Average 2000 $12,612

Source: Texas Comptroller’s Office

Exports to Selected Destinations (in thousands)

Market 1997 1998 1999 Percent of Trade

Canada $467,753 $361,801 $397,733 15.5 Mexico 2,166,284 1,939,380 2,050,861 79.8 Carribean and Central America 14,318 18,183 39,686 1.5 South America 6,570 4,425 4,485 0.2 Europe 23,962 70,418 53,670 2.1 Asia 14,318 22,970 22,044 0.9 Africa 2,552 2,166 1,800 0.1 Near East 724 886 332 0.0 Australia 656 1,032 835 0.0 All Countries $2,697,106 $2,421,261 $2,571,435 100.0

Source: Office of Trade and Economic Analysis, International Trade Administration

11 Brownsville-Harlingen-San Benito MSA Top Exports, 1999 (in thousands) Product Export Value Percent

Electric and electronic equipment $731,676 28.5 Chemical products 337,208 13.1 Transportation equipment 250,332 9.7 Non-manufactured commodities 234,150 9.1 Refined petroleum products 184,681 7.2 Industrial machinery and computers 159,545 6.2 Textile and Apparel 141,776 5.5 Fabricated metal products 134,181 5.2 Primary metals 95,041 3.7 Rubber and plastic products 88,647 3.4

Source: Office of Trade and Economic Analysis, International Trade Administration

xports were up 35 percent be- The Greater Brownsville Incentive winter because of its mild climate. tween 1993 and 1999. Since the Corporation uses the city’s economic Harlingen is said to be the top destina- E North American Free Trade development half-cent sales tax to tion for winter Texans who visit for at Agreement (NAFTA) was put in place fund industrial, commercial, manufac- least 30 days. The area boasts an aver- in January 1994, exports to Canada turing, distribution and wholesale age year-round temperature of 74 de- and Mexico have increased 1,018 per- projects. The money is dispersed grees. The Rio Grande Valley Winter cent and 12 percent, respectively. through job creation credits, building- Visitor Survey found that the median Mexico is the country to which lease assistance, relocation credits and annual income of winter Texans has Brownsville exports the most products. an interest rebate program. The increased to $41,500. They stay in the Exports to Germany were up the most Brownsville Local Development Com- area for an average 3.5 months and during the 1993 to 1999 period, rising pany supports small business owners spend an average $5,300 per house- 1,189 percent from $937,000 to $12 applying for loans from the Small Busi- hold. During the 1998–1999 season, million. Between 1998 and 1999 total ness Administration’s 504 Loan Pro- 124,000 winter Texans added $329 exports rose 6.2 percent. gram. million to the valley’s economy. Spring The Brownsville MSA’s retail sales The City of Harlingen is currently break is also a big tourist time for the per capita have been increasing since updating its comprehensive develop- MSA, when as many as 125,000 visit 1995. Shoppers crossing the border ment plan. Firms locating in the South Padre Island and Mexico. from Mexico boost sales in the area. Harlingen Industrial District can The Rio Grande Valley White The sales tax rate in Brownsville, qualify for ad valorem tax abatements Wings, a professional minor league Harlingen and San Benito is 8.25 per- and other financial incentives. The city baseball team, have been based in cent. The hotel-motel tax rate is 13 per- offers a free development guide to any- Harlingen since 1996. City of Harlingen cent in Brownsville and Harlingen and one interested in building in Harlingen. officials are discussing constructing a 10 percent in San Benito. Prospective developers may also set field for the team. Cameron County is one of four Rio up an appointment to speak to repre- Bird watching is a $100 million in- Grande Valley counties to qualify for sentatives of major city departments, dustry in the Valley. The World Birding tax breaks authorized by the legislature including planning, waterworks, pub- Center is to be completed by 2002, beginning in 2001. The counties are lic works, engineering and building in- with satellite branches to be located in classified as Strategic Investment Areas spection. Harlingen and Brownsville. The Rio because of high unemployment and The Brownsville-Harlingen MSA is Grande Valley Birding Festival draws low per capita income. Tax credits for home to many “winter Texans,” a term thousands of visitors to the area each research expenses, job creation and in- used to describe people from colder year. Hunting and fishing are both $1 vestment expenditures will benefit climates who live in the valley during billion industries. small and large firms that qualify.

12 EDUCATION

Educational Level, Persons Age 25 and Older (in percent) Level of Education, 1990 Brownsville MSA Texas

High school graduate 19.7 25.6 Some college, no degree 14.4 21.1 Associate’s degree 3.9 5.2 Bachelor’s degree 8.0 13.9 Graduate or professional degree 3.9 6.5

Source: U.S. Census Bureau, 1990

Local College and University Enrollment Fall 2005 2010 School 2000 (estimated) (estimated)

University of Texas at Brownsville* 9,075 3,649 4,060 Texas Southmost College* N/A 7,923 8,741 Texas State Technical College - Harlingen 3,266 3,439 3,871

*The University of Texas at Brownsville and Texas Southmost College have a joint relationship and are located on the same campus. The fall enrollment figure represents combined enrollment. Sources: Educational institutions and the Texas Higher Education Coordinating Board, January 2001

he University of Texas at Texas State Technical College at The Regional Academic Health Cen- Brownsville (UTB) and Texas Harlingen has begun new programs ter, a teaching hospital for 48 third- T Southmost College (TSC) share leading to associate’s degrees in medi- and fourth-year medical students, will the same facilities and faculty. TSC of- cal assistance and telecommunica- be located in Harlingen and overseen fers freshman and sophomore level tions. It has just completed the semi- by the University of Texas Health Sci- courses, while UT Brownsville offers conductor manufacturing technology ence Center in San Antonio. The $25 upper-level and graduate courses. TSC building that will house courses in sat- million facility is scheduled to be op- has begun construction on an new stu- ellite communication and semicon- erational in 2002. dent union building. ductor technology.

13 TRANSPORTATION AND INFRASTRUCTURE ISSUES

Airline Boardings 1998 1999 2000

Brownsville-South Padre Island International Airport 74,066 71,296 67,869 Valley International Airport (Harlingen) 466,728 469,214 468,358

Sources: Brownsville-South Padre International and Valley International Airports

Port Activity 1998 1999 2000

Port of Brownsville Total calls 229 204 223 Total tonnage (millions) 3.25 2.90 3.18

1997–98 1998–99 1999–2000 Port of Harlingen Total tonnage (millions) 0.93 1.0 1.03

Sources: Brownsville and Harlingen Port Authorities

Border Crossings 1998 1999 2000

Rail Crossings Northbound 12,134 15,354 11,125 Southbound 32,717 31,780 33,868 Total 44,851 47,134 44,993 Vehicle Crossings Northbound 6,215,573 5,858,711 6,492,658 Southbound 6,951,202 6,159,143 6,912,341 Total 13,166,775 12,017,859 13,404,999 Truck Crossings Northbound 121,255 265,462 299,238 Southbound 290,746 237,189 218,226 Total 412,001 465,146 517,464

Source: Texas Center for Border Economic and Enterprise Development

ameron County accommodates 107 and 345 are also located in the Harlingen Airplex, to U.S. 77 and the a large amount of international MSA. Free Trade Bridge. In Brownsville, a C shipping. U.S. Highways 77, In Harlingen, the relatively new proposed loop on the east side of the 83 and 281 run through the MSA. Ex- Loop 509 provides a direct route from city would connect the Gateway Inter- pressway 77/83 is being expanded to the eastern side of the city, including national Bridge to Expressway 77/83. six lanes. State Highways 4, 48, 100, the Harlingen Industrial Parks and

14 Signs have been unveiled for the gate and passenger facilities. Phase Brownsville Weir and Reservoir is in new I-69 that will connect the lower two was completed in spring 2001; the process of obtaining a final permit Rio Grande Valley with the rest of the phase three should be completed in for the $37 million project. A weir is interstate highway system. The high- summer 2001. The expansion will al- similar to a dam, but it contains de- way will split near the border to serve low another airline to service the airport. vices that allow water to continue both McAllen and Brownsville. No Currently, Continental Airlines is the flowing downstream, while at the date for construction has been set. The only passenger carrier. General avia- same time raising the water level of the Texas Department of Transportation is tion services are provided by Hunt Pan river. planning a $5.2 million inspection sta- Am, Southmost Aviation and The Brownsville Public Utilities tion in Brownsville. Brownsville Air Center. Southwind Board (PUB) is scheduled to receive $2 The Free Trade Bridge at Los Indios Aviation, Inc. is a flight school operat- million this year from the Environmen- is the largest, most modern port where ing out of the airport. Emery World- tal Protection Agency toward construc- as many as 75 trucks can be inspected wide and Burlington Air Express pro- tion of the weir and reservoir project. at one time. The new Veterans Interna- vide daily cargo service to the airport. The allocation to PUB falls $8 million tional Bridge at Los Tomates in The Valley International Airport in short of its request, however. Brownsville opened in April 1999. Harlingen is serviced by American San Benito is known as “Resaca Cameron County is currently doubling Eagle, Continental Express and South- City” for the 400-foot-wide dry creek the number of exit lanes to speed in- west Airlines. Airline boardings were bed that used to run through the city. spection and improve traffic flow. down slightly in 2000. The creek bed is now a major irrigation Harlingen and San Benito have Southern Pacific Railroad and Union canal. An $8.4 million state grant will launched a transit system for seniors Pacific Railroad have switching yards provide some 33,750 colonia residents and the disabled. Vans provide trans- in Harlingen. Southern Pacific Rail- in the valley with water and wastewa- portation for $3 a ride. road also serves the Harlingen Indus- ter systems by the year 2002. San The Brownsville-South Padre Island trial Parks and Port of Harlingen. Benito residents will benefit from this International Airport is undergoing The Rio Grande Valley receives its project. renovations costing $4 million. The water from the Rio Grande River, via project will add a second boarding the Falcon and Amistad reservoirs. The

URBAN GROWTH PATTERNS

ap 1 shows the growth pat- Map 2 shows the growth patterns in marily been small units located near terns in Brownsville. Retail Harlingen. According to Harlingen’s the hospital. M construction has been most planning director, the southwest por- In Harlingen, medical office growth prevalent near Sunrise Mall. Hotels tion of the city is the primary site of has been occurring near the hospital. and restaurants are being built along residential growth. Several recre- Some small strip office buildings have U.S. Highways 77 and 83. Boca Chica ational vehicle parks catering to winter been built throughout the city. Retail Boulevard is also experiencing retail Texans are located on the west side of growth has been infilling throughout growth. Residential development has the city along Hwy. 83 toward La the city. Industrial growth is located been occurring in every direction but Feria. Tropic Winds, a large, new mo- primarily along the north of the Loop has been most prominent in the north, bile home-RV park, is located north of 509 corridor southeast of the airport. especially at Paseo de la Resaca along Loop 499. Apartment growth has pri- FM 802.

15 US 77 Retail

Multifamily SH 48 Residential Residential Retail FM 802 US 281 Industrial Office

Retail Retail SH 4 Industrial

Retail Map 1. Growth Areas Brownsville, Texas Census Place Water Area Highway Source: Real Estate Center at Texas A&M University

SH 107 US 77

SH 499

Industrial

Retail

Retail/Office US 83 FM 801 Retail SH 374 Apartments Office

SH 448 Map 2. Growth Areas Harlingen, Texas Industrial Census Place US 83 Highway US 77 Source: Real Estate Center at Texas A&M University

16 PUBLIC FACILITIES

he Cameron County Sheriff’s De- Brownsville Tennis Center will be built $16.8 million, are scheduled to open partment will build a facility in along the new hike-and-bike trail. in fall 2001. T the new law enforcement com- The city is planning to build a 900- In 1999, the U.S. Fish and Wildlife plex near Olmito that will include the seat civic center and a recreation Service granted approval for the La- county jail. Officials and private sports center for $4 million. In guna Atascosa National Wildlife Ref- groups are discussing redevelopment Harlingen, a $600,000 arroyo hike- uge to expand. The refuge can acquire of historic downtown buildings. and-bike trail was completed during up to 108,127 acres in Cameron and The MSA has been investing in its summer 2000. Willacy counties to add to its current public park systems. The City of A $6.5 million natatorium is being 45,187 acres. Brownsville is renovating Dean Porter planned on the north side of FM 802 at The La Feria municipal complex Park. A Children’s Museum will be in- Seville Boulevard near the epicenter of added 8,110 square feet of office space cluded in the $7.5 million renovation, Brownsville’s construction boom, the to the existing 4,902 square feet in the which should be completed in 2002. 1,000-acre Paseo de la Resaca devel- complex. The project was financed by Construction has begun on the $1.5 opment. Two of the three new elemen- $850,000 from grants and the city. The million Lincoln Park in southeast tary schools being built are located in new building includes portions of city Cameron County. St. Charles Park will the same area. The three elementary hall, the police department and new be built near downtown. The 17-court schools, which are projected to cost fire department offices.

HOUSING

Housing Affordability – Fourth Quarter 2000

Percent of Households THAI for That Can Afford First-time Median-priced Home THAI* Homebuyers

Brownsville 47 0.92 0.73 Harlingen 63 1.43 1.07

*The THAI is the ratio of median household income to the income required to buy the median-priced home using currently available mortgage financing. 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 household income is just enough to qualify for a loan sufficient to purchase the median-priced home. Source: Real Estate Center at Texas A&M University

17 Brownsville-Harlingen-San Benito MSA Single-family Building Permits

2,500

2,000

1,500

1,000

500

0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000

Source: U.S. Census Bureau

Average Sales Price of Single-family Home, Brownsville-Harlingen-San Benito Area $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999

Brownsville Harlingen

*Data unavailable for all years Source: Real Estate Center at Texas A&M University

18 Single-family Home Sales Volume, 2000

70 60 50 40 30 20 10 0 May July April June March August October January February November December September Brownsville Harlingen

*Data not available for all months Source: Real Estate Center at Texas A&M University

Price Distribution of MLS Homes Sold in Brownsville, 2000 (in percent)

Price Range Harlingen Brownsville

$29,999 or less 4.3 7.2 30,000–39,999 7.1 7.7 40,000–49,999 6.8 7.7 50,000–59,999 7.9 12.6 60,000–69,999 11.1 11.7 70,000–79,999 10.0 6.6 80,000–89,999 9.3 12.6 90,000–99,999 7.1 6.6 100,000–119,999 8.9 7.4 120,000–139,999 6.8 5.5 140,000–159,999 3.9 4.0 160,000–179,999 3.9 2.6 180,000–199,999 2.9 1.7 200,000–249,999 3.9 2.8 250,000–299,999 1.8 1.3 300,000 and more 3.5 1.9

Source: Real Estate Center at Texas A&M University

19 Final Plats Harlingen, 2000

Name of Subdivision Number of Lots Created

Los Alamos Estates Unit No 2 147 Vista Verde 145 Caoley Estates Phase III 133 Summerfield Estates 56 Las Colinas of Treasure Hill Phase I&II 55 Treasure Hills Country Club Blk 3,4,5 54 Town and Country Estates 50 Stuart Oaks 50 Summerfield Estate Unit No. 4 38 The Oaks 38 Outside City Limits Lazy Palms Phase II & III 285 Lazy Palms Phase 1B 106 Vista Del Sol No. 3 103 Villa Las Palmas Phase II 76 Aloe Vera Section 1 46 La Glofia Canal Phase II 40

Source: City of Harlingen

n 2000, 2,706 single-family home percent in 2000. There was a 26.5- Line Road and FM 802. The master- permits were issued in the metro- month inventory of homes for sale in planned community is expected to Ipolitan area; 2,017 permits were is- 2000. Approximately 56 percent of grow to 4,000 homes by 2012. Reports sued in 1999. The average value of a MLS-listed homes in Harlingen sold for show that this residential development new home was $66,300 in 2000 and between $30,000 and $89,999. is four years ahead of schedule. The $68,300 in 1999. In the first quarter of The Texas Water Development Community Development Corp. of 2001, 558 new homes were permitted. Board adopted rules that will require Brownsville will build 375 homes in During 2000, 530 homes were re- subdivision developers to install sew- the same area by 2002. ported sold through the Brownsville age and water systems on their lots or In San Benito, a 100-lot subdivision Multiple Listing Service (MLS) at an av- to post bonds for the work. Cities and is planned on Yost Road. A 300-lot erage price of $89,900. There was a counties must enforce these rules to be subdivision is in the planning stage as nine-month inventory of homes for eligible for grants and loans from the well. sale in 2000, down from 10.5 months Economically Distressed Areas On South Padre Island, Bay Harbor, in 1999. Approximately 60 percent of (colonias) Program. A Harlingen devel- a 24-lot townhome project, was ap- MLS-listed homes in Brownsville sold oper believes that these rules will in- proved in 2000. Phase two is planned for between $30,000 and $89,999. crease the cost of lots by $5,500 each, with an additional 11 lots. Most of the In Harlingen, 280 homes were re- or $60 million collectively, over the single-family construction on the is- ported sold through the Harlingen MLS next ten years. land is occurring on individually in 2000 at an average price of Hudson Farms’ Paseo de la Resaca is owned lots. $106,800. Home sales were down 8.5 located in Brownsville near Paredes

20 MULTIFAMILY

Brownsville-Harlingen-San Benito MSA Multifamily Building Permits (in units) 1,200

1,000

800

600

400

200

0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000

Source: U.S. Census Bureau

Brownsville-Harlingen-San Benito Apartment Statistics, December 2000

Brownsville Texas Metro MSA Average

Average rent per square foot $0.55 $0.75 Average rent for units built since 1990 $0.67 $0.96 Average occupancy (in percent) 95.0 95.7 Average occupancy for units built since 1990 (in percent) 96.3 95.4

Source: Apartment MarketData Research

he apartment occupancy rate for In Brownsville, Rancho del Cielo projects, such as fourplexes, dispersed the area fell 1 percent from 1999 Phase II, a 180-unit complex, is under throughout the city. A 144-unit com- T to 2000. For units built since construction in the northwest part of plex costing $6 million, the Riata 1990, occupancy rates increased from the city. Phase I has approximately 140 Apartments, is being planned on Haine 89.9 to 95.2 percent. Rent per square units and was completed in 1999. La Drive. Oak Terrace, a 64-unit apart- foot rose one cent during 1999. In Mansion is a 168-unit apartment com- ment complex, is under construction 2000, 163 multifamily units were per- plex planned for FM 802 as part of the on South Loop 499. Sundance Apart- mitted, up from 160 in 1999. In the first Paseo de la Resaca development. ments started construction in 2000. quarter of 2001, 26 multifamily units In Harlingen, apartment develop- The 176-unit complex is located on were permitted. ment has primarily consisted of smaller Vermont Street. An 18-unit complex is

21 under construction on Hale Avenue. on Gulf Boulevard. Two condominium minium towers. Lighthouse condo- Several small complexes are under projects are under construction and miniums will include two 11-story construction in the 800 block of North two more are planned. Las Zentanas towers. Las Dunas is another planned 26th and 27th streets. and Las Arenas are 11-story condo- high-rise tower. On South Padre Island, a large apartment complex is under construction

MANUFACTURED HOUSING

Brownsville MSA Manufactured Home Sales Proportion of New Manufactured Single-family Homes Homes Sold (in percent)

1997 315 16.4 1998 403 17.3 1999 380 17.7 2000* 223 14.0

*Through third quarter 2000 Source: Texas Manufactured Housing Association

he number of manufactured Manufactured homes are popular cluding the cost of land, according to homes sold in the Brownsville because of their improving image and the Manufactured Housing Institute. T MSA declined in 2000. About affordability. For an average price of The median income of manufactured 60 manufactured homes were sold $37,500, an individual can purchase a home owners nationally is $24,500. through third quarter 2000, represent- home averaging 1,380 square feet, ex- ing approximately 14 percent of new single-family housing.

22 RETAIL MARKET

Retail Market – Rio Grande Valley 1999

Downtown Average rent $4.70 Occupancy (in percent) 60.0 Neighborhood Service Center Average rent $13.20 Occupancy (in percent) 90.0 Community Power Center Average rent $17.40 Occupancy (in percent) 90.0 Regional Malls Average rent $10.40 Occupancy (in percent) 95.0

Source: NAI 2001 Real Estate Planning Guide

Hotel Occupancy and Rental Rates, 2000

Brownsville/ South Padre Harlingen Island Texas

Occupancy rate (in percent) 67.2 63.7 67.2 Average daily rental rate $57.01 $105.63 $86.75

*Through November 2000 Source: PKF Consulting

ap 3 shows locations of retail Motel 6 is under construction at sion project, opened in July 2000. The building permits in Harlingen. north Expressway 77 and Tyler Street project added one million square feet MIn Brownsville, an extended- in Harlingen. Country Inn and Suites to the mall, as well as 300,000 square stay Hawthorne Suites opened in May opened in early 2001 at Expressway feet in nearby Sunrise Commons, a 2000, creating 30 jobs. Another ex- 77/83 and New Hampshire. A number power center. tended-stay hotel, a $10 million, 102- of hotels in Harlingen have been un- A 24,000-square-foot Staples in the room Residence Inn by Marriott dergoing remodeling. Sunrise Commons was completed in opened in 2000 at 2975 North Ex- On South Padre Island, several ho- summer 2000, creating 40 jobs. A 16- pressway. The hotel is one of two com- tels are under construction. Travel screen movie theatre,Big Kmart, an pleted along the highway. A 74-room Lodge, Microtel and The Flamingo are IHOP, Johnny Carino’s, Chili’s and Holiday Inn Express hotel was com- under construction on Padre Boule- Black-Eyed Pea restaurants are new pleted just south of Ruben Torres Bou- vard. A Red Roof Inn is planned for Sunrise Commons tenants. Other levard and U.S. Hwy 83/77 intersec- 2001. Howard Johnson opened in 2000. stores opening in the new space in- tion in March 2001. The city’s The expansion of Sunrise Mall, lo- clude Foley’s, Gap and Old Navy. hotel-motel tax is already exceeding cated at Expressway 77/83 and FM Dillard’s will move into the new mall $1 million per year without the addi- 802, Brownsville’s largest retail expan- from Amigoland Mall. Wallbangers tion of the newer hotel rooms.

23 and Tony Roma’s opened restaurants Price roads. Downtown, a Dollar Gen- Lube and Tube was completed on along the Expressway. A new sports eral opened on East Elizabeth Street South Expressway 77. bar will be constructed in the area. along with El Mago, a low-priced gen- IHOP is under construction on Lin- Wal-Mart built a Supercenter west of eral merchandise store. coln in Harlingen. Jack in the Box is Expressway 77/83, just south of Tejon The City of Brownsville renovated under construction on Expressway 83. Road in Brownsville. The new store the former Brownsville Country Club Borrego’s Restaurant is being built at opened in March 2001, and the store golf course. The $5.2 million project South H Street. Wendy’s is being built on Boca Chica Boulevard closed. Pre- was completed in June 2000. at Ed Carey Drive. McDonald’s was re- liminary plans call for a Sam’s Whole- The Jackson Street District, home to built on Sunshine Strip in 2000. El Pato sale Club to be built on the site as well. many antique shops, is in downtown restaurant was opened on South High- The Builders Square on Boca Chica Harlingen. A New York Deli opened way 77 in 2000. Boulevard has closed. A Best Buy is on Jackson Street. The First National Bank of San planned at Expressway 77/93. An A Home Depot opened in Harlingen Benito opened a Harlingen Branch on amusement park is planned on Paredes on Expressway 77/83, creating 127 Sunshine Strip in May 2000. Hidalgo Line Road. A new credit union opened jobs. Boggus Ford has a new dealer- Federal Credit Union was built in 2000 in Brownsville. The project cost ship under construction on Express- on West Lincoln. Texas State Bank was $650,000. way 83 at F Street. Rio Storage com- built on South US Highway 77. Fast food chains are planned along pleted a self-storage facility on East On South Padre Island, two new res- Highway 48 near FM 802 in Browns- Port Court. taurants, Bigo’s and Las Brisas, opened ville. A Chick-Fil-A has opened in An Exxon station is under construc- in 2000 on Padre Island Boulevard. A Brownsville, and there is a new H-E-B tion on Expressway 83. Texmart con- number of T-shirt shops are under con- grocery on Paredes Line Road. Eyear venience store was built in 2000 on struction, including two large shops on Optical opened a store on Boca Chica East Tyler street. A convenience store Padre Island Boulevard. Schlitterbahn Boulevard, hiring six employees. Tex- was built on Loop 299. Hicks Oil is un- opened a new water park on South Pa- Mart opened a store on Boca Chica der construction on North Commerce. dre Island. The park started construc- and plans another for FM 511 and Ex- Lube N Wash is being built at Loop tion in July 2000 and opened in May pressway 77/83. Circle K opened in 499 and Expressway 77. Precision 2001. early 2000 at Old Port Isabel and East

SH 107 US 77

SH 499 US 83 FM 801 SH 374 Map 3. Commercial Building Permits, 2000 SH 448 Harlingen, Texas Census Place Highway US 83 Commercial US 77 Source: Harlingen Building Permit Office

24 OFFICE MARKET

Office Property Statistics Class A Class B

Central business district Average rental rate $12.90 $11.70 Occupancy (in percent) 90 75 Suburban Average rental rate $13.20 $13.05 Occupancy (in percent) 90 90

Source: NAI 2001 Real Estate Planning Guide

he U.S. Border Patrol’s new $14 Southwestern Bell Wireless will care patients account for 32 percent of million, 50,000-square-foot open at the former site of Wallbanger’s the hospital’s clientele. T building in Harlingen, located restaurant in North Brownsville by the The Dolly Vinsant Hospital currently on New Hampshire and Expressway end of 2001. The office at 1900 N. Ex- has 81 beds and has announced an ex- 77/83, was completed in 2000. The pressway in the Omni Pavilion will of- pansion project costing approximately City of Harlingen and the U.S. Immi- fer phone activations, customer ser- $3 million. gration and Naturalization Service vice and equipment exchange. Driscoll Children’s Hospital plans to completed an $8 million annex on Ex- Southmost Road will soon see the construct a pediatric clinic in Browns- pressway 77/83 near Wal-Mart. completion of a 13,000-square-foot ville. The clinic will be located directly In Harlingen, offices are planned on Texas Workforce Center, which will behind Valley Regional Medical Center. West Harrison. State Farm is planning begin operating in December 2001. In Harlingen, the Regional Aca- an office at Camelot Plaza. Bahana The center will be located at South- demic Health Center broke ground. A Real Estate is planning an office on most and Morningside roads and will $6 million Su Clinica Familiar is East Harrison. Villareal Office Com- cost about $300,000. The new center scheduled to be constructed west of plex was built in 2000 on East will have a special conference area the medical school and will comple- Harrison. An office complex was con- available for community gatherings ment the $24 million facility. Medical structed on East Harrison in 2000. An- and will offer many facilities for job students will start in 2002. other office complex was completed seeking and educational information. The Valley Baptist Medical Center is on East Tyler in 2000. Crossroad Office On South Padre Island, an office planning to build a $7.5 million pedi- complex was completed on East Tyler. complex is under construction on Pa- atric care center that will create about The exterior of the former court- dre Island Boulevard. 60 jobs. The 61-bed facility will house, the Dancy Building, is being re- double the hospital’s capacity to treat stored at a cost of $2.7 million. Fund- Medical Offices severely ill children. The 42,000- ing is still in process for renovation of The Brownsville Surgical Hospital is square-foot facility will be constructed the interior of the building, which is lo- under construction near the Valley Re- on the fourth floor of the hospital’s cated on Madison Street. The Browns- gional Medical Center. The 34,000- new east tower. ville Historic Museum also is undergo- square-foot facility is owned by a joint Doctors' offices are under construc- ing a $500,000 renovation. venture of 40 local doctors and is ex- tion on Ed Carey and Camelot Drive. A One Paseo Place, a six-story office pected to cost $8.5 million. new heart hospital is under construc- building, will be the centerpiece of the A six-story medical office building tion at Expressway 77 and Camelot in Wildflower Office Park, part of the was completed in 2000 in Harlingen. Harlingen. Silva Medical Plaza is Paseo de la Resaca development in Medicare reductions have hurt local planned in Brownsville. The center on Brownsville. Construction is expected hospitals. Valley Baptist Medical Cen- Central Avenue is expected to start to begin in 2001. ter estimates that through 2002 the construction in 2001. hospital will lose $25 million as Medi-

25 INDUSTRIAL MARKET

Industrial Property Statistics, 2000

Bulk Warehouse Manufacturing Flex

Average rental rate $3.30 $3.48 $5.10 Occupancy (in percent) 95 90 95

Source: NAI 2001 Real Estate Planning Guide

n the Rio Grande Valley, NAI/Rioco 40,000 square feet in the Airport In- Brownsville has two major industrial Realty indicates that bulk ware- dustrial Park. YPS Mold and Engineer- parks, the Brownsville-South Padre Is- Ihouse space rents for an average ing makes and tests plastic injection land Airplex and the Port of Browns- $3.30 per square foot and manufactur- molds for the automobile industry. The ville. The Port of Brownsville has ing space for an average $3.48 per firm operates out of a 5,000-square- 18,000 acres available for develop- square foot. Warehouse and manufac- foot facility on 14th Street and employs ment, 5,000 of which have infrastruc- turing space had 2000 vacancy rates of five. ture in place. At the Port of 5 and 10 percent, respectively, in the In Harlingen, the Frito-Lay/Rio Brownsville, Uniexcel Chemical Solu- MSA. Grande Snack Company plans to add a tions plans to build a manufacturing Dexter Adhesive & Coating Systems 55,000-square-foot addition to its pro- plant. The site is located on the north is adding 5,000 square feet to its facil- duction plant. The $20 million expan- side of the ship channel. ity near the intersection of FM 511 and sion will create 40 jobs. Additionally, Brownsville has sev- Highway 48 in Brownsville. The part- In Harlingen, Fox Valley Molding eral smaller parks including NAFTA In- nership of Nardi Italia and Valley plans to build a new facility on East dustrial Park, Victoria Lake Industrial Trucking Inc. will move into a 50,000- Grimes. Industrial Fab has a plant un- Park and Brownsville Industrial Park. square-foot speculative building lo- der construction on East Grimes. Bales Development is occurring in the new cated in the NAFTA Industrial Park at Mold Service completed construction Veterans International Trade Center. FM 511 and Highway 48. Tella Tool & on FM 509. Malco Warehouse was The Class A park is located adjacent to Manufacturing is building its 30,000- built on North Expressway 77 in 2000. the Veterans International Bridge. The square-foot facility in the park. Gib’s Tool and Die was completed in 101-acre park is designed to accom- Neoplan USA, a bus manufacturing 2000 on Industrial Way. QConics was modate light manufacturing, warehouse unit, and New Process Steel, a steel also constructed on Industrial Way. A distribution and corporate offices. processing unit, are opening in tortilla factory was built in 2000 on The Port of Harlingen has 150 acres Brownsville in 2001. Scientific Mold- New Combs. available for development, all of ing Corporation has purchased 50 In San Benito, Penske Logistics is which are included in the City of acres on FM 511 for a plastic injection constructing a 178,000-square-foot Harlingen’s Enterprise Zone. The molding plant. The facility is expected warehouse. The warehouse will hold Harlingen Channel is maintained to a to be completed by early 2002. goods being transported between the width of 125 feet and a depth of 12 Trico Products is closing its facility United States and Mexico. feet. in Tennessee and leasing an additional

26 CONCLUSION

nternational activities and trade portation corridor to Mexico. Road ex- strong medical services industry. Retail with Mexico are extremely impor- pansions continue to increase the growth is also occurring in Browns- Itant to the Brownsville-Harlingen- trade and transportation industries in ville. With new businesses moving San Benito MSA. The North American the area. into the area and a relatively low un- Free Trade Agreement has increased The MSA is experiencing growth in employment rate, the MSA’s outlook is Brownsville’s importance as a trans- its educational facilities and in its good.

601-25-1477