Texas is the second-biggest state of the US by size, spreading over an impressive 268,596.5 sq. miles and taking up 7.07% of the country’s total land. The state’s sheer size ensures that the regions within the state will have some differences in their commercial real estate market movements.

Rio Grande Valley has seen an upward trend in overall growth for the past several years. The changes in the past several years have predominantly been beneficial for commercial real estate in Rio Grande Valley. This blog will give a brief overview of the region and explore the changes boosting the industry.

About Rio Grande Valley

Rio Grande Valley (RGV) is located in the southernmost part of Texas and shares a border with Mexico. The region is known best for its citrus orchards and exotic birds and has a warm climate that makes it a popular vacation spot during winters.

Brownsville, McAllen, Edinburg, and San Juan are some of the major cities in the region; they are the first to benefit from the changes boosting the commercial real estate market.

Changes Affecting Commercial Real Estate in Rio Grande Valley

The changes affecting commercial real estate in Rio Grande Valley are a combination of old and new. Some have built up to their current state, while others happened relatively recently but have significantly helped the region.

Some of the most prominent of these changes are mentioned below.

1. Establishment of University of Texas Rio Grande Valley (UTRGV)

University of Texas Rio Grande Valley was established nearly two years ago and enrolled its first batch of students in the fall of 2019. The influx of students and recruitment of over 2,300 staff members had a significantly positive impact on commercial real estate.

Business owners recognized the earning potential of the region, and commercial activity increased, boosting commercial real estate growth. However, commercial activity is not the only reason for the boost.

The institutions creating the UTRGV bought extensive land to create university buildings and campuses. The land purchase was the first change through which the establishment of UTRGV affected CRE growth in the region.

2. Boost in Population and Economic Growth

RGV has seen a 30% growth in population between 2010 and 2020. This population growth and investment in infrastructure have led to economic growth in the region, increasing real estate prices.

These changes are attractive from a commercial perspective, the real estate and commercial real estate market in Rio Grande Valley.

3. State Policies

Red states have more capitalism-favoring policies than blue states, making red states better for commercial real estate investment. Texas has been a Red state for all presidential elections since 1980. Therefore, RGV investments enjoy the benefits of investment favoring policies in the region.

Wrapping Up

Commercial real estate in Rio Grande Valley has sustainable profitability because the changes benefiting it has long-term effects.

Please get in touch with our team if you want to invest in properties in the region. CHRE has been working in commercial real estate in Rio Grande Valley for several years, and we will find the most lucrative opportunities for you.