As of mid-2026, the Texas commercial real estate market is demonstrating remarkable resilience, buoyed by a combination of demand for office spaces and robust industrial growth.
In the first half of 2026, total commercial real estate transactions in Texas reached approximately $15 billion, a slight decrease from the same period in 2025, which saw $16.2 billion in transactions. This decline is largely attributed to prevailing economic uncertainties, including interest rate fluctuations and inflationary pressures.
Houston has emerged as a focal point for commercial investments, with the city recording a significant uptick in office leasing activity, particularly in the downtown area. According to a recent report from the Greater Houston Partnership, office vacancies fell to 15.8%, down from a peak of 18.2% in late 2025. Industry experts indicate that many companies are seeking to return to in-person operations, which is driving demand for office space.
“We are seeing a rejuvenation of interest in office spaces, especially those that offer flexible layouts and amenities,” said Jessica Turner, Executive Director of the Houston Commercial Realty Group. “Companies are recognizing the importance of creating collaborative environments as they bring employees back into the workplace.”
Additionally, the industrial sector remains robust, with Texas benefitting from its strategic location for logistics and distribution. The Port of Houston has experienced record-breaking cargo volumes, leading to increased demand for warehouses and distribution centers. In Q2 2026, the vacancy rate for industrial properties in Texas stood at 4.2%, a stark contrast to the national average of 5.8%.
Dallas-Fort Worth is also witnessing a surge in multi-family housing projects, driven by a growing population and demand for rental properties. The area added more than 20,000 new apartment units in the first half of 2026, according to data from the Apartment Association of Greater Dallas. This influx has led to a slight increase in rental prices, which now average around $1,600 per month.
“The rental market in DFW remains competitive, and we expect this trend to continue as more people move to the area for both employment and lifestyle opportunities,” noted Mark Reynolds, Senior Analyst at the Texas Real Estate Institute.
Overall, while challenges persist, the Texas commercial real estate landscape is adapting to current economic conditions, solidifying its reputation as a resilient investment hub.