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3 trends driving commercial real estate development in Texas

In recent years, more and more commercial real estate developers are beginning to look inward rather than focusing their efforts on building along the coasts. Cities throughout Texas have seen numerous benefits from this development. It’s expected that this growth will only continue in the years to come, and commercial real estate developers should be ready to take advantage. Here are three trends driving commercial real estate development in Texas that you should bear in mind.

1. Texas is the new California

According to a 2020 Texas relocation report, 86,164 California residents relocated to Texas in 2018. This number far outpaces Florida, which came in second at 37,262 for the number of people relocating to Texas from that state. High housing costs, high taxes, and natural disasters are just some of the factors driving this migration. Commercial real estate developers should take note of companies who are looking for a more business-friendly tax climate and people who are looking for more affordable housing.

2. Industrial real estate is expected to be popular

Condos and office space are important things to consider when addressing the burgeoning needs of Texas residents. However, it’s important that you not overlook industrial real estate. The booming growth of e-commerce means that many companies are looking for distribution centers near major urban markets. As people demand faster delivery times, it’s important to think about warehouses located at the edge of cities.

3. Urban infill projects

As the population in Texas cities continues to swell, urban infill projects are likely to become more and more attractive. With the need to build both logistics centers and housing close to urban centers, developers should pay close attention to building on nearby plots of land.

Paying attention to population trends and the demands of growing communities can help you make smart commercial real estate development decisions.