A Guide to Commercial Real Estate in Houston
Houston, TX real estate, we talk about that a lot around here and for a good reason!
With a sprawling city and a population reaching 7 million, the Greater Houston area has a ton of homes, apartments, townhomes, and condos.
But with such a lofty population, another obvious truth presents itself about Houston, TX; there are also a lot of commercial properties.
Jobs, entertainment, operational, etc., Houston is known for its construction, and that goes far beyond fixing the 610 Loop.
Buying commercial real estate in Houston, TX can be a lucrative investment both for landlords looking to rent out premium spaces to tenants and business owners looking to purchase a place of their own and invest in their company.
Do you think you’re ready to make a move and purchase or rent your own commercial real estate space?
Before rushing into a commitment and investment, take some time and review this guide on all things commercial real estate for the Houston marketplace.
Consider Your Type of Business and the Traffic it Needs
If your business is going to survive, it’s going to need customers, and taking into consideration the type of foot traffic your business needs to operate is vital.
For landlords, this step is equally important as you want to ensure the location you are selecting receives the appropriate amount of foot traffic in comparison to the type of industries you are looking to attract.
We all know that location is the cornerstone of real estate in any market, but for businesses, it can be the life or death of an organization.
The industry and type of business you are setting up play a big part in this consideration.
On one hand, a restaurant will rely heavily on active foot traffic and consistent visits from visitors to create a revenue stream and maintain a viable business.
It may not receive the same success as a fabrication shop or distribution center if it is away from its target market and stuck in a sea of industrial buildings.
Find a location that is right for your business and ensure that it is set up for success because of it not in spite of it.
Are you renting your commercial real estate?
Knowing the traffic that is available in conjunction with the types of tenants you are looking to attract (more on that in a minute) can go a long way in your investment and development strategies.
Geography Matters More Than Ever
Tax Day. Harvey. Imelda. That one time, it rained for a couple of hours really heavily on a Tuesday.
You get the point.
Houston is beautiful, but flooding is officially a part of this city’s make up.
In the last couple of years, Houstonians have come to understand and respect the power of nature and the rain that it brings. Locating areas that can keep your businesses high and dry and having a development strategy that can build your business into a place of protection can help you keep going when disaster strikes.
Geography also ties back into our previous section.
What kind of traffic will your property be receiving?
Is it enough to sustain the type(s) of business opening in this location?
Is it the right target market for the businesses being created.
In-depth research and consideration into the geographical makeup of your property and the surrounding areas should be taken before any major decision is finalized.
Decide the Type of Tenants You’re Looking For
If you are planning on developing commercial real estate for the explicit use of renting it out to other businesses, identifying your target market is a must.
When considering tenants, there are many different factors to consider, including some that we have touched on:
- What industries does this area cater to?
- What are the developments around your immediate market going to develop into in the future?
- How much are you willing to invest?
- What industries do you wish to attract?
- How flexible are you willing to be for your tenants to customize their space to their business needs?
As we’ve examined, every industry is going to have different needs. The issue here is that as a landlord, this means different tenants are going to need various accommodations.
Are you willing to have a restaurant in your building and deal with the protections needed regarding the sale of alcohol or the risk of fire?
Can you accommodate large machine shops, and are you willing to take on such a massive investment for a potential client that traditionally takes much longer to find?
There are many options available, but whatever you do, don’t rush. Take your time and decide on the specific things that work with your business goals to execute your commercial real estate investment strategy in a much smoother manner.
The Key to Commercial Real Estate in Houston, TX
Market research is imperative for almost any investment, and in commercial real estate, things are no different.
Having the right team on your side that can bring this research along with expert advice to your discussion can make the difference between finding a location that brings prosperity to your business or bleeds your company money.
The team at Key Realtors is prepared to help your business locate the perfect property for your business goals.
Whether you are an investor looking for commercial property to market to upcoming area businesses or a company looking to secure their next commercial space, Gwen Key and her group of trained Realtors are prepared to help you achieve your commercial real estate goals.
Contact one of our real estate agents today and get to know the difference Key Realtors can make for your business.