It seems hard to believe, but it’s been five years since the beginning of the COVID-19 pandemic, and more recently, inflation has hit everyone hard. As we move through 2025, there are signs that some negative commercial real estate trends that resulted from that one-two punch are beginning to reverse.

In Tyler, a robust local commercial real estate industry (office, industrial, retail, apartments, hotels, restaurants and land) helps everyone. Here are some statistics that show the health of that industry in Tyler as of the end of 2024.

Inventory

Overall commercial real estate inventory continues to increase, as developers build new properties and owners list their properties for sale. In the third quarter of last year, inventory peaked at 705 units, compared to only 137 units at the beginning of the pandemic.

Occupancy

Commercial occupancy has actually decreased a bit over time, which makes sense as the new inventory on the market hasn’t yet been occupied. With more than 21% of properties currently available, this ensures businesses in Tyler have many options to enter the market, grow or expand.

Sales Price Per Square Foot

Retail properties saw a huge spike in sales price per square foot as COVID restrictions began to loosen, though it has since returned to normal levels, with a slight increase over pre-COVID levels. The office market has fluctuated based on remote work during the pandemic and various return-to-office mandates, which is to be expected. Industrial has remained relatively flat as it was least impacted by the events of the last five years.

While these are just three of the indicators used to determine the current state of commercial real estate, they bode well for the economies of Tyler and Smith County going into 2025. A stable, yet growing industry means more jobs, a broader tax base and enhanced lifestyle options.