The state of Texas has a population of 23,507,783 spread out across over 261,797 square miles. It is the second most populous state, and, by land mass, it is the second largest state in the United States. And, as you would expect with such large amounts of people and land, the Texas real estate market is hot. Out of state investors are dumping money into the state because, with so much land, there is bound to be a bargain somewhere. Texas is a fast-growing state, but investors are looking at Texas commercial real estate and residential with equally keen interest.


Across the state, the multifamily housing market is strong, with the vacancy rates in most residential cities below ten percent. Dallas is a notable exception; it's vacancy rate is at about 23%. The same can be said for office vacancies, where Dallas again lags the rest of the state. The number is somewhat misleading though, because the demand for office space is so huge. For example, in Ft. Worth, office vacancies hover at around six percent.

The Dallas area is just coming out of an industrial slump, but industrial leases are still lagging behind other commercial sectors. Retail is also down in the Dallas area; both new construction and demand are slackening. With the housing market down, condo-conversions are slow in Dallas, and across the state. Still, the local Dallas economy is in an upswing and it is experiencing rapid growth, so experts forecast all sectors grow stronger in the very near future.

Austin is a college town with a world-famous music scene. Previously, the commercial market had been dedicated to residential and retail investment, but these days, office and flex-use sectors are growing. High tech and defense corporations are locating in Austin in high numbers, prompting many of the university graduates stay in town. As the transient residents become permanent residents, Austin's residential and retail sectors are growing. Further, with the influx of light industry, the industrial and flex-use sectors are growing, too.

The Houston area boasts cheap, open land, not just on its outskirts, but also within its city limits. Infill projects are mostly focused on mixed-use, luxury development, while outlying vacant land is more diversified, including retail, office and residential development

In East Texas, timber is big business and commercial real estate is available for business ventures that cater to that industry. In the Dallas/Fort Worth metropolitan area, aerospace and defense industries are prevalent, and much of the commercial real estate is used for those businesses.