🔥 “Is Texas Becoming America’s Manufacturing Capital? | CRE Trends Investors Must Watch 🚀”

🏭 “Why U.S. Manufacturing Is Moving to Texas — And What It Means for CRE Investors 💼”

Is Texas Becoming the New Capital of U.S. Manufacturing? Here’s What CRE Investors Need to Know

For the last decade, Texas has dominated national headlines for population growth, corporate relocations, and job creation. But now the Lone Star State is entering a new era — one that could redefine America’s entire industrial and manufacturing landscape.

From semiconductors to EV components, aerospace, life sciences, and next-gen energy systems, Texas is rapidly positioning itself as the new manufacturing capital of the United States.

And for commercial real estate investors and business owners, this shift represents one of the biggest opportunities of the next 10–20 years.

Why Manufacturers Are Choosing Texas

1. A Business-Friendly Environment

Texas offers:

·No state income tax

·Predictable regulatory frameworks

·Aggressive financial incentives for manufacturers

·Fast-track development programs

These advantages are now luring companies that once relied on California, New York, or overseas manufacturing hubs.

2. Mega-Scale Infrastructure Development

Billions are flowing into:

·High-capacity transmission lines

·Industrial corridors along I-10, I-35, and SH-130

·Energy infrastructure to support data centers, robotics, and advanced manufacturing

·Deep-water port expansions (Houston, Corpus Christi, Freeport)

Texas is building the logistical backbone needed for rapid industrialization — and CRE activity is following.

3. Talent Pipeline + Workforce Growth

With nearly 1,000 people per day moving to Texas, companies gain:

·A fast-growing professional workforce

·Skilled trades supported by state-funded training programs

·University partnerships that feed into engineering, tech, and manufacturing

This solves the labor shortage problems plaguing other states.

4. Federal + State Incentives Are Accelerating Growth

Major catalysts include:

·Texas CHIPS Act (semiconductors)

·Inflation Reduction Act (clean energy)

·Department of Defense reshoring initiatives

·Massive corporate capital commitments (Google, Samsung, Tesla, NVIDIA, Toyota)

These moves have poured billions into Texas and created long-term demand for industrial, logistics, and flex manufacturing space.

Submarkets Leading the Charge

While the entire state is experiencing growth, several markets are positioned to become national powerhouses:

📍 Houston & Gulf Coast

Energy 2.0, advanced materials, life sciences, and petrochemical manufacturing.

📍 Austin

Semiconductors (Samsung), AI manufacturing, robotics, defense tech.

📍 Dallas–Fort Worth

Logistics, automotive, aerospace, and warehousing.

📍 San Antonio

Cybersecurity, aerospace, military tech manufacturing.

📍 Katy / Fulshear / West Houston

Explosive industrial development along I-10, driven by:

·Data center demand

·EV and energy storage manufacturing

·Flex industrial for growing mid-market companies

·CHEM, plastics, and precision manufacturing

Katy & West Houston are becoming the hidden gem for mid-sized manufacturers who want:

·Lower costs than Austin

·Better logistics than San Antonio

·Closer proximity to the Port of Houston

What This Means for Commercial Real Estate Investors

1. Industrial Land Prices Will Keep Rising

Especially along:

·West Houston / Katy

·Brookshire

·Freeport

·North Austin

·I-35 corridor down to San Antonio

2. Flex Industrial Will Be the Hottest Asset Class

Manufacturers need:

·5,000–50,000 sq. ft.

·Dock-height capability

·3-phase power

·Room for expansion

·Yard space

Build-to-suit demand is rapidly outpacing supply.

3. Reshoring = Long-Term CRE Stability

Unlike tech office cycles, manufacturing leases are:

·Longer

·Stickier

·Less prone to layoffs

·More capital-intensive (customization = long-term commitment)

This gives investors true stability.

4. Data Centers + Industrial = The Perfect Storm for Land Owners

With:

·Google’s new $40B Texas investment

·NVIDIA’s expansion

·Tesla’s massive campus

Land near power + fiber + highways is becoming the new gold rush.

Bottom Line

Texas isn’t just growing — it’s transforming into the industrial engine of America.

For CRE investors and business owners, now is the time to:

·Secure land

·Lock in industrial space

·Explore build-to-suit opportunities

·Position yourself in high-growth corridors like Katy, Fulshear, Austin, and Dallas

Manufacturing isn’t coming back to the U.S…

It’s coming back to Texas.

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© 2023-2024 Bill Rapp, Broker Associate, eXp Commercial Viking Enterprise Team