The Lone Star State also has lots of room for commercial growth. Below we look at the future of Texas commercial real estate.
Explosive Population Growth
The Lone Star State leads the nation in population gain and is the top destination for relocating Americans.
Eight of the top 15 counties for population gains are in Texas. Between July 1, 2016, and July 1, 2017, the Dallas and Houston metro areas were first and second respectively for the nation’s top gaining metros; Austin was eighth. Collectively, these three metros added gained a combined 300,000 new residents.
Why All the Growth?
These population gains aren’t a new trend for Texas and they don’t seem to be slowing. Why are so many people relocating to Texas?
CNN Money says that most people are making the move for work. Jobs are available and the pay is good. On top of that, paychecks also go further.
The second reason people choose the Lone Star State is that the cost of housing is very affordable. Not only that, but residents pay also no personal state income tax.
Texas’ metro areas like Houston and Dallas offer opportunity and affordability, a combination that many other large cities don’t.
Joel Kotkin, professor of urban development at Chapman University in Orange, California says:
In New York, San Francisco and LA, if you’re blue-collar you will be renting forever and struggling to make ends meet. But people in Texas have a better shot at getting some of the things associated with middle-class life.
Also, Texas offers great choices for city lovers. If you live in some other states and desire a truly metropolitan area, you might have a single good choice. Or possibly two major metro areas to choose from.
For example, New York has New York City. Illinois has Chicago. Georgia has Atlanta. Yet unlike most other states, Texas has several major cities to choose from — Houston, San Antonio, Dallas, Fort Worth, Austin, and El Paso.
Benefits for Business Owners, Developers, & Brokers
Texas prides itself on being ‘business friendly’ and makes itself attractive to business owners, both big and small. Businesses that operate in Texas benefit from tax incentives and lower business taxes than they would face in many other states. This makes it easier to launch a commercial enterprise and directly influences commercial development.
Developers also benefit from working in Texas. The Lone Star State has plenty of land that can be bought cheaply. This makes it less expensive to get retail, office, warehouse, or multi-family property projects off the ground. Texas also has favorable regulations that let developers start quickly.
In addition, cheap land and easy construction regulations allow projects to get off the ground and meet the growing needs for housing, office space, retail, and healthcare facilities. All of these commercial projects benefit the needs growing populations across the state.
In the end, an increase in properties means more work for brokers, commercial real estate agents, and office leasing specialists who facilitate transactions.
The Future of Commercial Real Estate in The Lone Star State
The future is bright for commercial real estate in the Lone Star State. Texas is business friendly, family-friendly, and development friendly. With a steady stream of Americans relocating to Texas, it is easy to envision cities and metro areas continuing to grow. This growth holds much promise for those involved in every aspect of the commercial real estate industry — developers, builders, brokers, and everyone in the supply chain.