Over the last decade, Texas’s commercial real estate market has been on fire, and that doesn’t seem like it will be changing anytime soon. Investors noticed this growth and have continued to invest in various markets around the state with good returns.
In fact, commercial real estate contributed more to Texas’s GDP than any other state. This shows the incredible growth and strength of the commercial segment in Texas.
Where exactly is this commercial growth happening in Texas? Today, take a closer look at the three hottest markets in the state.
Texas-wide Trends in Commercial Real Estate
Before we get into the top cities for commercial real estate, find out more about what trends are guiding this growth across the state.
Here are the leading trends contributing to rapid commercial real estate growth:
- Redevelopment of old malls, empty stores, and other commercial spaces in both major cities and small towns.
- Companies are developing not just in cities but also in local suburban areas, where workers will get more bang for their buck.
- Office spaces are being updated to reflect post-COVID needs like greater flexibility, more outdoor spaces, and other smart upgrades.
- Sublease spaces will continue to exist in the commercial sector until the economy recovers more completely.
The 3 Hottest Markets for Texas Commercial Real Estate
Austin has been recognized as the country’s hottest commercial real estate city for 2021, and it’s easy to see why when you look at what’s happening in the city’s market.
Leasing office space in Austin has been going quickly for a few years now as Austin is the fastest-growing tech hub globally, and those needs are reflected in companies trying to have a presence in the area.
Tesla set up a factory outside of Austin, Oracle’s headquarters are in the region, and these are just two of many companies in the area. In addition, Amazon, Apple, Facebook, and many more large tech companies continue to expand their presence in Austin, which has a major effect on the region’s commercial real estate market.
Austin has even been nicknamed the “Silicon Valley of the South.”
Businesses continue to move to Austin at a rapid pace, which creates many jobs in tech and other industries. Austin has many employment opportunities alongside this growth, and the area remains affordable for workers.
Many of the companies that come into the region focus on building with eco-friendly practices as well, so it’s no wonder that so many people are settling in this area. Investors that want to make the most of this commercial boom should move into the area quickly, as the growth isn’t slowing down.
Dallas Fort Worth ranks second behind Austin for the top commercial real estate cities of 2021. This is not just for Texas; this is for the entire country!
It won’t be a surprise to anyone who has been spying attention that Dallas/Ft. Worth continues to be a hub for commercial growth. DFW has continually been ranked as one of the nation’s top cities for suburban office space, and this trend will likely continue.
Dallas is a huge financial hub for the region, and there is room for expansion in both Dallas and Fort Worth in the commercial sector. Now, it seems like investors and businesses are taking notice of that room!
Over the last five years, the growth in both Dallas and Fort Worth is unmatched by any other area of the country, and this leads more and more investors to the area each year. Industry growth paired with affordable living prices have greeted the perfect boom for the commercial market.
For as long as investors in this region continue to see big returns on their investments, both Dallas and Ft. Worth is likely to keep growing.
The final city that has got a hot commercial real estate market right now is San Antonio. Known for its presence in the military, healthcare, and energy sectors, San Antonio shows a strong presence.
Commercial real estate investors see the strength of investing in this area because it balances a low cost of living with a high quality of life due to the region’s location, entertainment, and general lifestyle.
Since investing in San Antonio is less expensive than other markets across the country, many companies and investors choose this region for future growth. Commercial property opportunities will continue in this region for some time because of this.
Texas: Commercially Attractive
Though Austin, DFW, and San Antonio are the hottest markets for commercial real estate right now, they are far from the only parts of that state poised for growth. As mentioned earlier, state-wide trends are setting the entire area up for huge investments.
These are just a few more cities in Texas where commercial real estate is likely to keep growing: