Buying Texas Commercial Property: A Decision Checklist

A market headline cannot tell you whether a particular building is worth buying. The decision comes down to the price, the work required, the tenants, the financing, and the alternatives available to you.

Start with the asset, then test the market

• Reconcile the rent roll with leases, collections, concessions, and operating statements.
• Obtain current insurance and financing quotes instead of relying on the seller’s historical costs.
• Review roof, structure, mechanical systems, accessibility, and the timing of major replacements.
• Map direct competing properties and the specific tenants likely to choose your building.

Keep supply measures separate

For a residential or multifamily thesis, the Census Building Permits Survey offers state and local permit data. Permits describe authorized construction, not completed units or tenant demand. Use them as one input alongside local construction activity, leasing evidence, and property-level diligence.

Put the alternatives on the same page

Compare the proposed purchase with holding the current portfolio, paying down debt, or funding improvements to an existing property. Use the same hold period and include transaction costs. Show what happens if lease-up takes longer, repairs cost more, or refinancing terms are less favorable.

Make the next decision explicit

Before signing a purchase agreement, identify the unanswered questions, the person responsible for each answer, and the date it is needed. A useful acquisition brief should make it clear what evidence supports proceeding and what evidence would stop the transaction.