Investors have long flocked to Texas, where their investment dollars buy more property than in other markets. Here, we’re looking at the five hottest real estate markets in the Lone Star State.
The Hottest Real Estate Markets in Texas for Commercial Investors
Commercial Real Estate is booming in Austin. A recent Emerging Trends in Real Estate report rated Austin as the number one city nationally for Commercial Real Estate investors in the coming year, beating out 79 others for the title.
You read that right: Austin is the best city for CRE – not just in Texas, but in the nation. The Lone Star State’s capital beat out big-name metropolises like Raleigh, Nashville, and Boston. Considering Austin was ranked eighth in national population gains in 2018, and fifth in 2019, it’s no wonder the city rose quickly to the top of the real estate investment watch list.
Why Austin? Besides its fun-loving atmosphere, Austin also boasts plentiful employment opportunities, a booming tech industry, and affordable cost of living. Plus, it’s a leading innovator of green construction, making it popular among environmentally-aware builders and buyers. As Austin produces some of the most exceptional talent in the nation in its own backyard (the city is home to the University of Texas), many young professionals are putting down roots in Austin.
The Emerging Trends report predicts that industrial, multifamily, retail, and lodging will be the big winners in Austin’s CRE market. Notable industrial leaders are moving to Austin in record numbers, too: Facebook, Whole Foods, Dell, Apple, Home Depot, and GM all have regional headquarters in the city. Google and Amazon are also planning major hubs in Texas’s capital.
Austin’s economic prosperity and wealth of diverse talent make it a red-hot frontrunner for real estate investors in 2020 and beyond.
Dallas has been a leading commercial real estate location for close to a decade, and it doesn’t show signs of slowing in the next decade, either. With an estimated 1.35 million residents living in the city and a median age of just 33 years, Dallas promises unmatched growth for years to come.
As the cost of living in the nation’s primary markets (Los Angeles, New York, and other coastal cities) wanes, more and more investors flock to the center of the country, where their investment dollars can go further. The Dallas area is at the top of these so-called secondary markets thanks to robust industry growth, population increases, and a relatively low cost of living. In fact, last year’s occupancy rate was the highest in the Dallas area since 1981.
Dallas is also a popular destination for investors and builders looking to create environmentally-friendly spaces. In 2008, Dallas passed a green building ordinance requiring new properties to be both energy- and water-efficient.
Dallas continues to be one of the hottest real estate markets in Texas, and with good reason. Investors see higher financial returns in their Dallas commercial property for lease than nearly any other market in the Lone Star State.
3. Fort Worth
Population growth, the completion of a mass transit system within the city, and low unemployment rates drive the need for new construction in Fort Worth.
Dallas and Fort Worth are nearly always lumped into the same category. But the metropolitan area just west of Dallas features its own industry and a distinct opportunity for real estate investors.
Fort Worth is smaller than its neighbor to the east – just 900,000 residents – but it is growing strong. Leading industries in Fort Worth include office management, education, sales, construction, and healthcare.
Population growth, the completion of a mass transit system within the city, and low unemployment rates drive the need for new construction in Fort Worth. Specifically, investors look to cater to millennials, who are entering the workforce and moving to large cities, searching for walkable metropolitan housing solutions. Commercial properties for sale in Fort Worth are a smart investment in this ever-expanding Texas city.
4. San Antonio
Nestled between the south and central regions of the Lone Star State, San Antonio remains a superpower in both industry and investments. It’s a hub for the United States military, financial service companies, healthcare providers, and energy/petroleum companies.
Home to more than 2.5 million residents, San Antonio is also a popular tourist destination, making it one of the hottest real estate markets in the state. Its stable and diverse economy make it relatively safe for CRE investors looking to purchase office buildings, medical offices, multifamily properties, retail centers, or industrial properties. San Antonio shows a long history of steady market trends, which is why it’s popular among commercial real estate investors. And even better, properties continue to be more affordable in San Antonio than in many other large CRE markets in the U.S. Investors will get more for their money when they invest in the Alamo City.
Finding commercial properties for sale and listing commercial properties for lease in San Antonio or other markets has never been easier. The dedicated and experienced brokers at CXRE can help guide you through the process. Contact us today to learn more.
Houston is a commercial real estate powerhouse, not just in Texas, but in the nation.
The relatively low cost of living comparative to the rest of the nation, combined with a growing local economy and job market, has created a mecca for commercial real estate investors. Office buildings, industrial properties, medical facilities, and multifamily or mixed-use properties have proven to be profitable year after year in the Houston area.
As host to many large corporations in a variety of industries, the Houston economic outlook is stronger than ever. Once a hub for gas and petroleum production, the city has diversified in recent years and now houses leading companies in oil and gas refining, petrochemical production, medical research and healthcare facilities, technology, national and international imports and exports, agriculture, fishing, and manufacturing.
And while the numbers indicate Houston falls behind Austin in projected growth, we think this city should rank at the top of the charts for the hottest real estate markets in America. Houston is our home, and the real estate experts at CXRE have an in-depth knowledge of this commercial real estate market. CXRE helps connect investors with the best possible properties that meet their portfolio needs, and we can even manage those properties, giving investors a stress-free experience.
If you’re interested in discovering profitable CRE properties in Houston, or any of the growing Texas markets, please connect with us. We would love to help you find the ideal property that meets your investment needs.
Other Texas Commercial Real Estate Markets to Watch
These other markets may not be the hottest real estate markets in the state, but they are growing fast. Investors should keep an eye on each of these emerging markets as they promise increasing population and industry growth.
As the 11th largest city in Texas, Lubbock projects a 7% growth rate through 2022, according to the Lubbock Economic Development Alliance. The population’s average age is just 31, setting the stage for a youthful workforce to create grand industrial and economic gains in the coming decade. The city’s primary industries are healthcare and social assistance, education, and retail trade, though it’s also a thriving center for the oil and gas industry.
Located 70 miles north of Austin, Killeen is an up-and-coming hub for commercial real estate investors. A recent report found that Killeen is one of the hottest real estate markets in the U.S. for single and multifamily homes, with prices rising more than 9% last year. The study projects a nearly 4% increase in home values in 2020, making it one of the fastest-growing cities in America.
Thanks to its proximity to Ft. Hood Army Base, Killeen enjoys a steady economic forecast, with retail, multifamily homes, and office buildings being the most popular and lucrative real estate investments.
Located near the border of Louisiana, situated just north of the Gulf Coast, Beaumont is growing in popularity with residents, businesses, tourists, and investors.
Real estate trending experts Mashvisor include Beaumont on their list of cities to watch in 2020. Citing high investment return rates, some of the best housing prices in the nation, and growing industry and economy, Beaumont is a city to watch for investors.