Real Estate Market Overview
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RealReal EstateEstate MarketMarket OverviewOverview Sherman-DenisonSherman-Denison Jennifer S. Cowley Assistant Research Scientist Mukta Naik Graduate Research Assistant Texas A&M University July 2001 © 2001, Real Estate Center. All rights reserved. RealReal EstateEstate MarketMarket OverviewOverview Sherman-DenisonSherman-Denison Contents 2 Population 5 Employment 8 Job Market Major Industries 9 Business Climate 10 Education 11 Transportation and Infrastructure Issues Public Facilities 12 Urban Growth Patterns Map 1. Growth Areas 13 Housing 16 Multifamily 17 Manufactured Housing Retail Market 18 Office Market Industrial Market Conclusion RealReal EstateEstate MarketMarket OverviewOverview Sherman-DenisonSherman-Denison Jennifer S. Cowley Assistant Research Scientist Mukta Naik Graduate Research Assistant 5 7 U Hendrix Pottsboro Kemp US Hwy 377 Denison Knollwood US Hwy 69 US Hwy 82 Sherman Bells US Hwy 75 Savoy US Hwy 82 Luella Dorchester Area Cities and Towns County Land Area of Sherman- Ambrose Southmayd Grayson Denison MSA Denison Tom Bean 943 square miles Luella Whitesboro Pottsboro Whitewright Population Density (2000) Sherman 117 people per square mile he Sherman-Denison MSA is Dallas telecommunications corridor. Denison is four miles from the located on U.S. 75 along the The city is named after General Sidney Oklahoma border and 75 miles north T Texas-Oklahoma border. Sherman, commander of the Republic of Dallas. The city has been designated Sherman, 30 miles from the Oklahoma of Texas cavalry at the Battle of San a Texas Main Street City by the Texas border and 66 miles from Dallas, is Jacinto, who was credited with first Historical Commission and is the considered the northern end of the saying, “Remember the Alamo!” birthplace of Dwight D. Eisenhower. 1 POPULATION Kelly Air Force Base, San Antonio Sherman-Denison MSA Population Year Population 1990 95,005 1991 95,582 1992 95,292 1993 95,911 1994 96,829 1995 97,792 1996 99,892 1997 100,670 1998 102,019 1999 103,728 2000 110,595 Source: U.S. Census Bureau Area Cities With 10,000 or More Residents Growth 1990–2000 City 2000 Population (in percent) Denison 22,773 4.83 Sherman 35,082 8.66 Source: U.S. Census Bureau he Sherman-Denison MSA the 1990s. Texas State Data Center will reach a population of 111,226 by population increased at an population projections forecast 8.6 2010 and 114,702 by 2020 — a T average rate of 1.5 percent per percent growth in population for the growth rate of 0.4 percent per year year during the past decade, a rate next two decades. The Texas Water over the next 20 years. slower than the state as a whole during Development Board predicts the area 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 Sherman-Denison MSA Projected Population Texas State Texas Water Year Data Center Development Board 2005 103,131 — 2010 105,566 110,226 2015 106,810 — 2020 107,851 114,702 Sources: Texas State Data Center and Texas Water Development Board Projected Population Growth, 2000–2020 (in percent) 50 40 30 40.2 20 10 0 8.6 Sherman-Denison MSA Texas Source: Texas State Data Center 3 Household Composition Grayson County Texas Median household size (1990) 2.84 2.73 Median age 37 33 Population younger than 18 (1999, in percent) 25.4 28.5 Population 65 and older (1999, in percent) 15.4 10.1 Source: U.S. Census Bureau Ethnic Distribution (in percent) Grayson County Texas Ethnicity 1990 2000 1990 2000 White 88.7 84.0 60.8 55.2 Hispanic 2.8 6.8 25.3 29.3 Black 6.9 5.8 11.7 12.2 Asian 0.5 0.6 0.3 2.8 American Indian 1.1 1.2 1.8 0.5 Other 0.0 0.0 0.1 0.0 Two or more races* — 1.7 — 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 ousehold size in Grayson Denison area has grown more ethni- income for 1999 was $23,521. The County is larger than in the cally diverse over the past decade, state average per capita income for Hstate as a whole. The county with the Hispanic population increas- 1999 was $26,834, according to the also has a larger portion of population ing most, as it has in the state as a U.S. Bureau of Economic Analysis. age 65 and older. The Sherman- whole. The MSA’s average per capita 4 EMPLOYMENT Sherman-Denison MSA Employment 50,000 48,000 46,000 44,000 42,000 40,000 38,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Source: U.S. Bureau of Labor Statistics Sherman-Denison MSA Unemployment Rate (in percent) 8 7 6 5 4 3 2 1 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 Source: U.S. Bureau of Labor Statistics 5 Top Ten Employers Top Ten Private Employers MEMC SouthwestBergstrom Air Force Base, MEMC SouthwestAustin Silicon wafer product Silicon wafer product 1,250 employees 1,250 employees Wilson N. Jones Regional Health System Wilson N. Jones Regional Health System Health care Health care 1,250 employees 1,250 employees Texas Instruments Texas Instruments Semiconductors and defense electronics Semiconductors and defense 1,200 employees 1,200 employees Texoma Medical Center CIGNA Health Services Medical claims processing 1,170 employees 900 employees CIGNA Johnson and Johnson Medical claims processing Health care products 900 employees 700 employees Sherman Independent School District Alcoa Building Products Education Vinyl siding 890 employees 400 employees Johnson and Johnson Kwikset Corporation Health care products Residential locks 700 employees 375 employees Grayson County Fisher Controls Government Rotary control valves 450 employees 365 employees Denison Independent School District Proctor and Gamble-Sundor Education Food products 400 employees 325 employees City of Sherman Cooper B-Line Systems Government Cable trays and enclosures 400 employees 325 employees Sources: Sherman Chamber of Commerce and City of Denison Sherman- Employment Growth by Industry Denison MSA Texas Employment growth, 2000 (in percent) 1.1 3.2 Unemployment rate (in percent) 3.7 4.2 New jobs in 2000 500 288,900 Employment growth by sector, 2000 (in percent) Services 4.2 4.7 Trade 0.0 3.1 Manufacturing –1.0 0.1 Mining 0.0 2.3 Finance, insurance and real estate 0.0 1.3 Construction 0.0 6.2 Government 0.0 1.7 Transportation, communications and public utilities 0.0 5.1 Sources: U.S. Bureau of Labor Statistics and Texas Workforce Commission 6 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 onagricultural employment total civilian employment for 2000 decreased slightly to 3.7 percent for increased 1.1 percent during was 49,269, up 2.2 percent from 1999. 2000, down from 4.4 percent in 1999. N 2000, less than the 1.8 percent Employment growth in the area is Manufacturers and the health care increase during 1999, according to the slower than employment growth industry are major employers in the Texas Workforce Commission. The across the state. Unemployment area. U.S. Bureau of Labor Statistics reports 7 JOB MARKET ccording to the Sherman Procter and Gamble spent $3 million AGP’s refinery in Sherman and the Economic Development to expand their food and beverage Pilkington-Owens-Ford windshield A Council, about 1,800 jobs division, including the addition of new factory. MEMC Southwest laid off 530 have been created since 1997, manufacturing equipment and creation employees in the first half of 2001. representing an investment of $160 of five jobs. In Denison, the Beatrice Foods plant million. In Pottsboro, the Tanglewood Resort closed in 2000 because of poor sales; CEMPLANK announced plans to & Conference Center will employ 250 100 employees lost their jobs. Svedala build a $50 million factory that will people. laid off 20 employees in March 2001. open in fall 2001. The plant will The Liberty-Owens-Ford plant HORIZON Pharmacies, Inc., laid off employ 60 to 80 people. The company closed as a result of company stream- 26 employees and cut administrative makes fiber cement that is used as an lining in 2000, laying off 408 employ- costs to improve cash flow.