One of the first pieces of advice we give to investors is to treat federal and state commercial real estate separately. Texas commercial real estate has shown time and time again that it follows notable trends that often contradict the country’s general commercial real estate trends.

This fact has become more prominent lately, especially with markets recovering from the COVID-19 related economic downturn. This blog will share some of the most common Texas commercial real estate trends for 2022 and highlight how similar or different they are from the overall market trends.

Texas Commercial Real Estate Trends for 2022

A successful commercial real estate investment lies in having a diversified portfolio. You don’t need to be a Texas resident to invest in commercial real estate in the state. The point is to make diverse and lucrative investments across the US to increase your ROI.

Following are Texas commercial real estate trends for you to consider when constructing your portfolio:

1. Commercial Real Estate is Recovering Rapidly

Interestingly, the commercial real estate market has recovered rapidly within Texas, leaving several analysts stunned. There is speculation about the reasons for this rapid recovery, but a lack of consensus makes it difficult to pinpoint the actual drivers. Following are some of the prominent factors suspected of affecting the market:

  • Less regulatory pressures for creating environmentally sustainable buildings
  • Increase in job opportunities and subsequent increase in population
  • Establishment of universities and similar infrastructure that support the overall economy

While all of these factors might be contributing to the recovery, the fact is that Texas commercial real estate is booming, and right now is the time to invest.

2. Warehouse and Industrial Properties are Booming

The e-commerce boom has affected Texas and has increased commercial real estate transactions for warehouse and industrial properties. This aspect is one of the few areas where the Texas market trends for 2022 resemble the general trend, primarily because it concerns an overall shift in consumer behavior.

3. Boosts due to Tech Industry Expansions

Tech industry leaders like Apple, Oracle, and Meta recently expanded operations in Texas, increasing job creation. Their presence has also boosted the local economy, improving commercial real estate prospects in several regions across the state.

This development will likely create long-term benefits for the Texas economy, leading to sustainable gains for the commercial real estate industry.

4. Commercial Real Estate Boom Will Continue

There were concerns about the possibility of Texas commercial real estate heading towards a decline, but it seems the concerns were unfounded. The low-interest rates in the country led to a spike in borrowing, creating a bubble, but the same doesn’t hold for this state.

Data shows that the Texas boom will likely remain stable in 2022, ensuring high returns for commercial real estate investors.

Wrapping Up

In short, Texas commercial real estate is lucrative, and you must include some properties from the region to boost your portfolio profitability. Please contact the CHRE team to invest in commercial real estate in Rio Grande Valley.

We have worked in the industry for several years and will help you find the most suitable options.