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South Texas, An Attractive Market For Commercial Real Estate Investors

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South Texas, An Attractive Market For Commercial Real Estate Investors

Though largely overlooked due to our lack of centralized metropolitan areas, South Texas is an attractive market for commercial real estate investors. The region has experienced a population growth of over 50% since 2000, with the majority of those new residents moving to the area from out of state. Additionally, retail and medical industries are expanding rapidly in South Texas, in addition to the staple University of Texas and proximity to Mexico.

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Population Growth

According to the UTRGV Economic Research Center, population growth was expected to double from 1.3 million people in 2012 to 2.4 million by 2045—a jump from three counties with over 100,000 residents each (Hidalgo, Cameron and Willacy) down to just two with over 100k each: Hidalgo County at over 830k residents followed by Cameron County at just under 800k residents.

In addition, there are several factors that will continue driving this growth over time including:

  • Proximity to Mexico – This factor includes trade agreements between both countries which have led to increased economic activity along their border regions; a strong relationship between these two countries has also helped create more jobs for south Texas residents than ever before.
  • UTRGV – It was established in 2015 with a mission statement promoting inclusion through academic excellence, civic engagement and service learning within an environment where diversity thrives as an essential part of learning processes for all students at our university.
  • Affordable cost of living. This factor includes low housing costs and a moderately priced cost of living which makes it easier for families to live here.
photo credit to rio grande guardian

SpaceX

SpaceX plans to create 500 jobs over a 10-year period and invest $80 to $100 million in capital investment. The direct economic impact by SpaceX would be more than $51 million annually in salaries. Economic experts figure another 300 to 400 jobs will be created from suppliers either moving to or expanding in the Brownsville area. The new space industry will enhance the supply-chain-logistics of the Brownsville-Matamoros local manufacturing base, which is a vital part of the automotive industrial corridor stretching from Central Mexico, through Texas and the Southern U.S. states.

Medical Industry

If you are investing in commercial real estate, the medical industry is a major driver of the economy. The healthcare industry in the Rio Grande Valley contributes $13.7 billion to the local economy and is accountable for 43 percent of new jobs over the last ten years. This makes it a prime location for investment due to its high growth rate, low unemployment rates, and large market size.

The medical industry also consumes goods and services which creates another opportunity for those who invest in this sector of commercial real estate.

Commercial real estate opportunities abound in South Texas.

With South Texas’ strong economy, there’s no question that there will be a bright future for commercial real estate investors. The key to success is knowing where to invest and how much time you can spend managing your properties.

The Rio Grande Valley currently has over 21 million square feet of industrial space available to develop, but the area’s population growth rate continues at an all-time high. As the region grows, so does its need for more commercial real estate spaces. This makes it an attractive market for those who want to invest in commercial property now or in the future when demand increases further still.

The Rio Grande Valley is filled with commercial real estate investors looking to capitalize on the region’s growth. This creates an opportunity for those who want to invest in commercial space, but don’t want to take on the risk of developing their own properties. With so much available land, there are plenty of opportunities for you to find a property manager who can help you manage your investment portfolio.

Conclusion

South Texas is a great market for commercial real estate investors, with plenty of opportunities to invest in all kinds of property types, including office buildings, medical centers, retail plazas and call centers. There are many reasons why this region is attractive right now: a growing population base, strong consumer spending habits and an increasing demand for medical services. With so much potential for growth in the years ahead, savvy investors will want to get their hands on some properties before prices reflect their (long term) worth.

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