Commercial real estate includes several property types, and in any local market, financial conditions drive prices. There are any number of reasons one market may outperform another. For example, fast-growing areas, cities experiencing an influx of businesses, or a market conveniently located for warehousing.

Texas is one of the hottest markets for commercial real estate investing, from office space to new development. The Wall Street Journal recently heralded Fort Worth as a fast-growing area with a sizzling commercial real estate market.

Why Texas Commercial Real Estate?

Texas is attractive to businesses for several reasons, including business-friendly policies and a steadily growing population. The World Economic Forum ranked states by workforce, infrastructure, the cost of doing business, and other factors; Texas comes in fifth in the nation, beating out most other Sunbelt states.

Despite economic uncertainty, Texas is faring better than many other areas. It continues to be one of the fastest-growing states in the nation, and the vast geography yields almost endless development opportunities.

Here are the four cities in Texas projected to become even bigger players in commercial real estate.

San Antonio

San Antonio is an industry and investment superpower, a tourist attraction, and a military hub. It’s home to healthcare providers, energy and petroleum companies, and financial services companies. Visitors see the Alamo, watch the San Antonio Spurs, shop the River Walk, or attend one of the country’s largest rodeos. Nearby military bases include Fort Sam Houston, Lackland Air Force Base, and Kelly Air Force Base.

Its attractive cost of living has brought a consistent influx of new residents, adding to its appeal to businesses. San Antonio is the second most-populated Texas city, growing at a rate of .95% annually.

While San Antonio boasts strong commercial real estate market trends for several years, it did not see the extreme acceleration of many other big cities. This makes investing in San Antonio relatively affordable.

The commercial office space market in San Antonio has grown steadily since 2018, with the population and influx of businesses. Demand is expected to remain strong for warehouse and manufacturing spaces.


Austin has been called the “Silicon Valley of the South” due to its dramatic tech boom, attracting companies like Apple, Salesforce, NVIDIA, Adobe, Dell, Tesla, and eBay. While Austin is not as affordable as it once was, the abundant employment opportunities paired with the city’s reputation as a vibrant, forward-thinking place to live continue to attract new residents from the U.S. and abroad.

While the demand for market space has softened in Austin since the pandemic, the local economy remains strong, with an annual job growth rate of 4.8%. While there may be opportunities to buy office space in the Austin area, other commercial real estate properties like warehouses and shallow-bay industrial properties.

Dallas-Fort Worth

Dallas and Fort Worth (DFW), called the “Metroplex,” are often lumped together, but each market offers distinct opportunities. The area has seen explosive economic growth over the past few years.

The Crowdstreet report ranked DFW as:

  • The #8 commercial real estate market nationwide
  • The #8 market for multifamily acquisition
  • The #6 market for build-to-rent

DFW offers investors steady population growth, an influx of new businesses, and a relatively affordable cost of living. The prosperity of the area is spreading.

North of DFW, a city called Frisco is gaining the attention of investors. It is a fast-growing area of Texas with an annual population increase of 3.9% a year. Commercial properties of every type are under construction.

Between 2021 and 2022, the population of DFW jumped more than any other US metropolitan area, increasing by over 170,000 people. Close behind, with a jump of over 124,000 residents, was Houston.


Houston’s growth has been less flashy and conspicuous than some other Texas cities. Still, its solid fundamentals have moved it into position as a powerhouse of the commercial real estate market. With a relatively low cost of living, steady economic growth, and a large and increasing population, Houston is a promising choice for investing.

In the past, Houston’s economy was heavily dependent on gas and petroleum production. In recent years, the city has diversified to include medical research, healthcare facilities, technology, imports and exports, petrochemical production, agriculture, and manufacturing.

Corporations like Amazon, Lowes, and Hewlett Packard are building vast fulfillment facilities in Houston.

Houston has investments with solid fundamentals and room to grow across commercial real estate property types, including warehouses, shallow-bay industrial, retail, and office space.

Investing in Texas?

At Belvoir Real Estate Group, we help clients find the right Texas commercial property for sale or lease. You can browse our properties for sale or connect with our expert agents for personalized service.