As we head into the second half of 2025, Tyler’s commercial real estate market is showing signs of both resilience and transformation, offering insights for investors, business owners, and residents.

Retail: Cooling but resilient

Retail real estate in Tyler boasts a strong asset value of $3.37 billion, the highest among commercial sectors. However, a 5.0% vacancy rate. combined with negative net absorption (86,695 SF becoming vacant) over the past 12 months suggests some softening. Despite that, asking rents remain healthy at $17.57/SF, and the sector remains attractive for investors seeking stable returns.

Office: Quiet strength

The office sector is quietly outperforming expectations. With a low vacancy rate of 3.7% and strong net absorption (133,306 SF becoming occupied), office spaces in Tyler are being utilized efficiently. Asking rents average $20.30/SF, and the sales volume surged 124% over the past year.

Industrial: Oversupplied and rebalancing

While industrial properties represent nearly $962 million in value, this sector is experiencing some turbulence. Vacancy stands at 7.4%, and absorption over the past year fell to -440,212 SF, suggesting a possible overbuild. Still, low rents ($6.60/SF) may entice cost-sensitive occupiers and opportunistic buyers.

Why it matters

This data reflects Tyler’s broader economic health. With 1.8% job growth, a stable population, and a median household income of $74,258 (up 2.8%), Tyler remains a magnet for business investment and quality living. In addition, employment in the area is growing well above national averages.

Whether you’re a local entrepreneur eyeing expansion, a homeowner tracking neighborhood trends, or a retiree exploring passive income from real estate, understanding these numbers helps you make informed choices about living in Tyler and in East Texas.

— Samuel Scarborough, CCIM, is broker and president at Scarborough Commercial Real Estate, LLC located at 410 W. Erwin St. in Tyler. Since 2016, Scarborough has earned a reputation as a trusted advisor and expert in the local market. He is also actively involved in the community, serving on the board of several local organizations, including the Tyler Economic Development Council, Champions for Children, Hospice of East Texas, Heart of Tyler and more. He also previously served on the Tyler Morning Telegraph’s Community Advisory Board. For more information, visit www.scarboroughcre.com .