1031 Exchange - Houston
HOUSTON 1031 EXCHANGE
The Texas real estate market has been one of the hottest in the country. 1031X is growing in Texas and will soon be the best 1031 exchange company in Houston. As the largest city in the state, Houston sits at the top of opportunity for investors. The city is the energy capital of the country and has one of the top cancer research systems in the country. These two thriving industries drive much of the population and job growth and have turned Houston into an innovation mecca.
The Houston metro area is the second most active real estate market in the United States over the last decade. The city has seen tremendous growth in the commercial and residential markets.
Commercial Real Estate
Over the last decade, the Houston real estate market added 44 million square feet of office space. New industrial construction was more than 153 million square feet, pointing to strong growth in the Houston economy. The growth wasn’t just in the oil-sector. Houston has been remaking itself into a hub for digital technology, manufacturing, and life sciences.
Self-storage can be an indicator of increased residential moving activity. The self-storage sector grew by 17 million square feet. This is yet another area that has created great returns for real estate investors.
The size of the Houston commercial real estate market is quite large. Houston has a total of 250,942,733 square feet of office space. Buildings between 100k and 500k sq ft make up 50% of that number. Houston has 337,950,201 square feet of industrial space. Roughly two-thirds of that total is in the 100k to 500k sq ft range. Houston also has a total of 87,494,555 square feet of mixed use, office and retail space. More than half of this category is made up of buildings between 100k and 500k square feet. Real estate investors in this market have benefited from the growth and diversity of this market.
Residential Real Estate
Houston’s residential market has been hot over the last decade too. Houston has seen more new building permits for single family homes than other city in the country. Houston has also been the number one destination in Texas for people moving from out of state.
Like many cities, Houston is known for its many neighborhoods. There’s been significant multifamily property growth in Downtown, Midtown, Montrose, The Museum District, The Heights, EaDo (East of Downtown) and River Oaks. As well, the growth in residential real estate investment has been in neighborhoods like West University, Memorial, Spring Branch, Briar Grove, and Meyerland.
The suburbs have also provided ample opportunities for investments in both commercial and residential real estate. These suburbs include Katy, Spring, The Woodlands, Tomball, Cypress, Sugarland, Missouri City, Pasadena, Alvin, Deer Park, Galveston, Humble, and Kingwood. These parts of town have all seen growth in multifamily, single-family residence, and commercial investments.
Whether you focus on commercial or residential real estate, taxes will have a great impact on your investment returns. Making use of the 1031 exchange to minimize and defer taxes on your portfolio is one of the ways to optimize your portfolio. Call 1031X today to schedule a strategy meeting to minimize your real estate investment taxes.