Many professional investors focus on Texas as their state of choice when doing business. Lately, commercial real estate has been particularly interesting for investors. To explain why this is the case, we have prepared the ultimate guide to commercial real estate in Texas!
Costs of investing in commercial real estate in Texas
Viewing Texas as a whole, it is one of the ideal states for commercial real estate investment. The cost of properties is affordable in most of the more prominent Texas cities, and the average prices of properties in the state are smaller than the average for the United States. An additional benefit is that setting up in Texas also costs less than it would in other states. And even funding your everyday life and activities would cost less. This is because the cost of living in Texas is quite affordable, especially regarding groceries and healthcare. The one slight exception is the cost of transportation, but even then, it is not significantly more expensive to travel here than in other states. You will have the time and resources to learn how to invest properly in real estate and grow your operations in the state!
Running your investment into commercial real estate in Texas
Texas housing markets usually are straightforward to get involved with. If you want to invest in commercial real estate in Texas, you will likely be able to manage independently. However, getting a professional real estate agent to help you is still much smarter. Professionals can help speed up the process and give insight into the local commercial real estate scene.
If you get involved in the housing markets of several cities, it might be a good idea to hire several local agents. Typically, a real estate agent specializes in handling one or a few cities. So, you would need a local to take full advantage of their knowledge and skill. Remember, too, that you might need other facilities to back up your operations. The experts from Heavenly Moving and Storage always emphasize how useful having a storage unit of your own can be! In addition, it is smart to consider hiring managers for your properties if you invest in multiple cities. Taking care of properties in several locations might be a daunting task to handle on your own.
Best types of commercial real estate in Texas to invest into
Generally, people separate commercial real estate into four basic categories:
- Office space
Now, it is possible to break those properties down into more categories. However, two, in particular, are highly sought after in Texas: housing and office space. Running rentals in Texas is highly profitable. Especially in college towns, where turning a profit is guaranteed. However, office space is just as good to invest in. Lots of startups and small businesses call Texas home. And all of them need office spaces of their own! However, this doesn’t mean the other two types of commercial real estate in Texas are unprofitable. But they do not match the earnings you can get if you plan your investments around the currently in-demand properties simply because the competition over them is not as high.
The best cities to invest into
There are two reasons why Austin is not just the best city for commercial real estate in Texas but also one of the best places to invest in the entirety of The United States. First, Austin is one of the fastest-growing cities in the US, meaning that the demand for housing is high, and rentals can make a huge ROI. Then, there’s the fact that the booming local tech industry is always on the prowl for better office space and even industrial commercial real estate properties. So, making money in real estate is a breeze if you invest in Austin!
Dallas is another fast-growing city that offers a niche for housing investment. Pair this with the city having a decent job market and a bustling economy, and you get an up-and-coming town to invest in. It doesn’t hurt that the city has some great amenities, such as commercial movers, which will ensure you have all the help you may need to transfer your belongings and get settled in. The city is also admittedly cheaper than Austin, which is somewhat starting to suffer from the ‘big city effect‘ that tends to dictate higher prices.
Houston as a city leans more towards the housing category of commercial real estate investment than the other three. The Universities it hosts make it a breeze to pander to college students who arrive here from all over Texas. The city stands out from the other options because the other three categories are not far behind in demand. This means that you can figure out what it takes to be a real estate investor and what field you wish to specialize in at your leisure!
Located near Dallas, Fort Worth is its own housing and investment market. The main crowds to appeal to here are young working professionals and the businesses that hire them. This makes Fort Worth somewhat similar to Austin and Dallas, but it tends to be a cheaper place to invest than the other two due to its smaller size.
San Antonio is an excellent investment opportunity and a city that tends to pander more to tourists than local businesses. You will easily find some attractive commercial real estate investment opportunities connected to tourism. Whether rentals or retail properties, you can turn a profit and grow your investment business into something notable. It also helps that San Antonio is one of the cheapest cities in Texas to purchase property in, despite being so profitable! This makes it a great option for those who want to build their real estate portfolio!
Having gone through the ultimate guide to commercial real estate in Texas, you should better understand why this state is optimal for real estate investment! As long as you are smart with your purchases, you will be able to make your plans bear fruit and turn a fantastic profit.
Check out the ultimate guide to commercial real estate in Texas so you can learn everything you can possibly need about investing in property!