📘 The Texas 1031 Investor’s Playbook: What to Buy in 2026 📘

🏢 What to Buy in 2026: The Ultimate Texas 1031 Investor’s Guide 🏢

The Texas 1031 Investor’s Playbook: What to Buy in 2026

If you're a Texas investor planning a 1031 exchange in 2026, you’re entering one of the most opportunity-rich markets in the country—but also one of the most competitive. With interest rates stabilizing, REITs returning to acquisitions, and cap rates resetting across major metros, knowing what to buy is the difference between a strong long-term hold and a costly mistake.

This guide breaks down the top asset classes, market trends, and strategic moves every 1031 buyer should consider when making their next acquisition in the Lone Star State.

🔥 Why 2026 Will Be a Big Year for Texas 1031 Buyers

Several major factors are aligning:

·✔ Rate stabilization is improving debt terms

·✔ Inventory levels are increasing as maturities hit

·✔ Population growth in Texas continues to lead the U.S.

·✔ Corporate relocations are driving demand for industrial, flex, and office

·✔ Developers are offloading assets to rebalance after high construction debt

This means more selection, better pricing, and strong upside for buyers who know where to look.

Top 1031 Investment Opportunities in Texas for 2026

1️⃣ Industrial Flex & IOS (Industrial Outdoor Storage)

Texas continues to dominate the industrial landscape—particularly in Houston and DFW.

Why it’s hot for 2026:

·Long-term tenant stability

·Supply-constrained in prime locations

·Construction costs remain high, boosting replacement value

·Amazon, Tesla, SpaceX, and logistics firms increasing demand

Best markets:
Katy, Brookshire, Fulshear, Conroe, North Fort Worth, Austin outskirts

Perfect for: Investors wanting low-touch, high-demand cash flow.

2️⃣ Neighborhood Retail Centers

Neighborhood-scale retail is outperforming big-box retail nationwide.

What’s driving demand:

·Explosive population growth

·Service-based tenants thrive in suburban Texas

·1031 buyers love predictable income and triple-net leases

Tenants to look for:
Medical, dental, fitness, dry cleaners, child-care, insurance, restaurants, local services.

2026 Trend:
Mom-and-pop retail anchored by medical continues dominating absorption.

3️⃣ Medical & Professional Office Condos

Especially strong in Katy, Fulshear, Richmond, and West Houston.

Why investors love them:

·Owner-occupied users = extremely low default risk

·NNN or modified-gross structure

·High demand from doctors, dentists, wellness, therapists

Bonus:
1031 buyers can place large amounts of capital into stable office condos with strong long-term appreciation.

4️⃣ Suburban Multifamily (20–80 units)

Texas submarkets continue outperforming national averages.

Why it works in 2026:

·High renter demand in Katy–Fulshear due to affordability

·Construction pipeline slowing down

·Strong rent growth projected after 2025 moderation

Where it’s strongest:
Houston west suburbs, San Antonio north areas, DFW secondary pockets.

Perfect for buyers wanting forced appreciation through light value-add.

5️⃣ Build-to-Rent (BTR) & Small-Lot Communities

BTR remains one of the fastest-growing CRE sectors in Texas.

Drivers for 2026:

·Families priced out of homeownership

·Investors prefer detached units vs. large multifamily

·Cap rate stability + long-term rent growth

Markets to target:
Katy, Fulshear, Hockley, Magnolia, New Braunfels, Kyle, San Marcos.

6️⃣ Land for 5–10 Year Hold Strategies

For investors with longer timelines, land near infrastructure growth corridors will shine.

Best areas (Houston):

·West Katy / Fulshear

·Brookshire

·Waller (near new CHIPS / industrial expansions)

·Sealy (logistics demand)

Land pairs extremely well with a 1031 when the goal is tax-free appreciation.

📌 Final Takeaway for 1031 Buyers

2026 will be one of the best years in the last decade for Texas 1031 exchanges.
Smart investors will focus on:

·Income stability

·High-growth corridors

·Assets with low cap-ex risk

·Markets supported by long-term population expansion

If you need help sourcing a 1031 replacement property in Katy, Fulshear, or Greater Houston — that’s what we do every day at the Viking Enterprise Team.

https://www.houstonrealestatebrokerage.com/

https://www.houstonrealestatebrokerage.com/houston-cre-navigator

https://www.commercialexchange.com/agent/653bf5593e3a3e1dcec275a6

http://expressoffers.com/[email protected]

https://app.bullpenre.com/profile/1742476177701x437444415125976000

https://author.billrapponline.com/

https://www.amazon.com/dp/B0F32Z5BH2

https://veed.cello.so/FOmzTty6oi9

https://creplaybookseries.billrapponline.com

https://creplaybook.billrapponline.com/

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