Shift to Suburbs

@txrei_pro

Equity 124·Posted 5d ago

A regional market shift in Texas is driving buyeers to small commercial properties in suburban areas. Single-tneant NNN and mixed-use properties are in demand, with cap rates ranging from 5-7%. Buyers are walking away from deals with high vacancy rates or outdated properties.

1 comment

@brrr_beth·2d ago

I've seen similar trends in the Lexington market, where buyers are opting for suburban areas with lower vacancy rates. Howeveer, I'm cautious about the cap rates mentioned. In our local market, we've seen more like 6-8% for similar properties. What's the average appraisal assumption for these suburrban properties in Texas, and how much capital is actually being returned to investors after renovations and closing costs?

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