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Commercial Real Estate Agent

Commercial Real Estate FAQs

What are the pros and cons of leasing vs. buying commercial real estate in Texas?

Leasing offers flexibility, lower upfront costs, and less responsibility for maintenance—ideal for business owners who want to conserve capital or anticipate growth or relocation. It’s often the best choice for startups or companies focused on operational agility

Buying on the other hand, provides long-term control, potential tax advantages, and equity growth. For investors or established businesses, owning property in Texas can be a strategic move—especially with strong markets like Dallas, Austin, Houston, and San Antonio offering long-term appreciation.

Each option has tax and financial implications, so the right decision depends on your goals, capital, and growth plans.

Commercial real estate costs go beyond the listing price. Expect these common expenses:

  • Down payment: Typically 20–35% for investors
  • Financing fees: Appraisal, origination, and underwriting fees.
  • Due diligence costs: Inspections, environmental assessments, and legal review.
  • Property taxes: Texas has no state income tax but relatively high property taxes.
  • Insurance: Especially important for flood and wind coverage in certain regions.
  • Operating expenses: Maintenance, utilities, and Common Area Maintenance (CAM) fees if in a multi-tenant property.
  • Legal & closing fees: Title insurance, surveys, and attorney fees.

For investors, you should also factor in cap rate analysis, expected ROI, and potential tenant improvements (TIs) when evaluating a deal.

Due diligence is critical to protect your investment. Here’s what to review in Texas:

  • Zoning & use restrictions: Make sure the property fits your intended use or investment strategy
  • Environmental risks: Especially important in areas with industrial history or flood zones.
  • Building condition: Hire inspectors to evaluate structure, roof, HVAC, and systems.
  • Financial performance: For leased properties, review rent rolls, operating statements, and tenant payment history.
  • Legal title & encumbrances: Ensure a clean title and no surprise easements or liens.
  • Local market trends: Vacancy rates, rent comps, and area development plans.

In Texas, county appraisal records and city planning departments are great starting points, but a broker or attorney can guide you through the process.

Texas offers a diverse range of commercial property types, each suited to different goals:

  • Office space: Best for professional services; Class A offices in Austin or Dallas attract high-end tenants.
  • Retail properties: Good for visibility and consumer traffic. Think neighborhood centers, strip malls, or freestanding buildings.
  • Industrial: Warehouses, flex space, and distribution centers—popular in Houston and DFW thanks to strong logistics infrastructure.
  • Multifamily (5+ units): A favorite among investors for stable cash flow.
  • Mixed-use: Combines retail, office, and residential—common in urbanizing areas like Austin and Frisco.

The right property depends on your risk tolerance, time horizon, and whether you plan to occupy, lease, or redevelop

A Texas-based commercial real estate broker brings market expertise, deal access, and strategic negotiation to the table. Whether you're an investor looking for off-market opportunities or a business owner needing the perfect space, a broker helps you:

  • Identify suitable properties
  • Analyze investment potential
  • Negotiate pricing and lease terms
  • Navigate zoning and permitting
  • Manage due diligence and closing

Most brokers are paid by the seller or landlord through a commission (typically 3–6%), meaning as a buyer or tenant, you usually don’t pay for their services directly. That’s a huge value—especially in fast-moving markets.