
š„š§ 2026 Texas Construction Pipeline Forecast: Where Ground-Up CRE Is Headed Next ššļø
š„š§ 2026 Texas Construction Pipeline Forecast: Where Ground-Up CRE Is Headed Next ššļø
š¢š Texas Development Outlook 2026: The Hottest Ground-Up CRE Opportunities Revealed šš„
2026 Construction Pipeline Forecast: Where Ground-Up Demand Is Heading in Texas
Texas is entering one of the most strategically important construction cycles in years. After a period of cautious capital deployment, rising interest rates, and supply-chain volatility, 2026 is shaping up to be a re-acceleration yearābut only in the right sectors, and only in the right markets.
For commercial real estate investors, developers, and business owners, understanding where shovel-ready demand is heading is the key to positioning yourself ahead of the curve.
Below is a breakdown of the strongest, most financeable, and highest-demand ground-up opportunities across Texas.
š„ 1. Industrial & Logistics Continue to Dominate (Especially West Houston & DFW)
Texas remains a logistics titan, and 2026 will push that momentum further.
Top drivers:
Ā·Manufacturers reshoring and nearshoring
Ā·AI-driven warehouse automation growth
Ā·Record freight volumes along I-10, I-35, and the Grand Parkway
Ā·Companies expanding ālast-mileā distribution capacity
Where demand is hottest:
Ā·Katy / Brookshire / Fulshear Industrial Corridor
Ā·DFW Alliance & South Dallas Submarkets
Ā·San Antonio I-35 Logistics Belt
Product types seeing the biggest demand:
Ā·Industrial flex
Ā·IOS (Industrial Outdoor Storage)
Ā·100Kā400K SF distribution warehouses
Ā·Truck terminals and transportation hubs
Banks and private lenders overwhelmingly prefer industrial in 2026āmaking it the most financeable construction category in the state.
š„ 2. Medical Office & Healthcare Anchored Development Surges
Texas is experiencing a medical expansion wave, especially around suburban population growth corridors.
Whatās driving it:
Ā·Population migration into suburban counties
Ā·Hospitals expanding west to capture new patient populations
Ā·Surge in outpatient care and specialty clinics
Ā·MOBs outperforming office in occupancy AND rent growth
Where ground-up demand is strongest:
Ā·Katy/West Houston ā Houston Methodist West, Texas Children's expansions
Ā·Fulshear ā new comprehensive care centers
Ā·Frisco/Plano ā medical district expansion
Ā·San Antonio ā outpatient care boom
Medical office is now considered a ādefensive asset classā and is one of the few office categories lenders prefer financing.
š„ 3. Build-to-Rent (BTR) & Horizontal Multifamily Stay Red-Hot
Even with multifamily starts cooling nationally, Texas is still a leader in new construction housing demand.
Why BTR is still booming in 2026:
Ā·Affordability gap vs homeownership keeps widening
Ā·Families prefer neighborhood-style rentals
Ā·Operators love the lower turnover/lower repair model
Ā·Lenders still support BTR in strong absorption markets
Fastest-growing Texas BTR markets:
Ā·Katy & Fulshear
Ā·Leander & Round Rock
Ā·Frisco / McKinney
Ā·New Braunfels / San Marcos
Expect BTR to remain one of Texasās most resilient development plays in 2026.
š„ 4. Mixed-Use Suburban Centers Make a Comeback
As work and lifestyle patterns shift permanently, suburban mixed-use is acceleratingāespecially in master-planned communities.
Drivers:
Ā·Live-work-play demand
Ā·Retail leasing stabilization in premium corridors
Ā·Community-based retail outperforming malls
Top mixed-use markets:
Ā·Elyson Town Center (Katy)
Ā·Fulshearās Downtown Redevelopment
Ā·LaCenterra-style suburban lifestyle centers across Texas
Developers who pair retail + multifamily + greenspace will see the strongest pipelines.
š„ 5. Manufacturing & CHIPS Act Projects Add a New Layer of Construction Demand
Texas is becoming a technology and manufacturing hub, with billions flowing into semiconductor and data center infrastructure.
Where growth is accelerating:
Ā·Taylor, TX (Samsung MEGA development)
Ā·Austin semiconductor corridor
Ā·Houstonās new AI and data infrastructure expansions
Industrial land near these megaprojects will see enormous demand for:
Ā·Supplier facilities
Ā·Assembly plants
Ā·Warehousing
Ā·Workforce housing
Key Takeaway for Investors & Business Owners
2026 wonāt be a ābuild everything everywhereā kind of year.
It will be a targeted construction boom, concentrated in high-demand corridors where population, infrastructure, job growth, and lender appetite all align.
Texas remains the epicenter of U.S. developmentāand the smartest capital will follow these five categories:
1.Industrial
2.Medical
3.BTR
4.Mixed-Use Suburban
5.Manufacturing Support Infrastructure
If you want personalized insight on where to invest or build in 2026, letās talk.
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Ā© 2023-2024 Bill Rapp, Broker Associate, eXp Commercial Viking Enterprise Team
