Texas Commercial Real Estate: Looking Outside of the CBD

Looking at major business hubs in Austin, San Antonio, and the Dallas-Ft. Worth area, there is an interesting trend in commercial real estate – specifically with office space and corporate campuses. Many businesses are now choosing locations outside of the central business district (CBD) in those cities to set up shop.

Commercial real estate is more affordable outside of the CBD

In Austin, the Apple Campus is serene, which is a big perk to its employees. However, being removed from downtown Austin is not just about enhancing the overall corporate atmosphere. The bottom line for Apple was that the outlying suburban areas had commercial real estate available for the amount and price they wanted. This is also why Google is not located right in the heart of Austin’s CBD. Right now, we are seeing more businesses looking at suburban areas because the location and price point align better than trying to secure smaller spaces in the heart of cities.

Unused land has great appeal in Texas

While many businesses try to move into existing buildings in big Texas cities, there is always at least one compromise to be made. For growing corporations, there is a risk that existing structures may not be able to hold employees or equipment after a short period of time. For these reasons, corporations are looking at unused land so they can build structures to suit their needs and account for future growth. As such, commercial real estate investors in and around major cities in Texas are looking to the outlying suburbs to invest in property to attract businesses that do not want the constraints or high-priced leases of the CBD.

Attracting other businesses to Texas

When a business sets up offices in an otherwise undeveloped area outside of the CBD, other businesses follow. The idea is that not everyone is going to eat lunch in the office, and many employees need convenient places to run errands on their breaks, or on their way home. One business attracts others, and then apartment complexes follow for those employees who want to live closer to work. Savvy commercial real estate investors in Austin and San Antonio are looking outside of the CBD for their next investments, because that’s where businesses are also looking.


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