Commercial Market Trends and Hays County Texas Property Tax

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Trends in New Commercial Construction Permits and Values

  • In 2024, approximately 3,150 new private housing permits were issued, highlighting continued residential and commercial growth.
  • Commercial developments including retail centers, warehouses, and industrial facilities are approved by the Development Services and must meet engineering and permitting requirements.
  • The total value of new commercial construction has seen steady gains, driven by rising investment in logistics, healthcare, and retail infrastructure.

These construction trends point to strong demand for both housing and commercial space, as reflected in updated valuations by the Hays County Appraisal District.

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Adjustments in the Office Market

  • In 2024, the delivery of around 1.1 million square feet of new office space was seen, up from approximately 850,000 square feet the year before.
  • By year-end, about 735,000 square feet of office space remained under construction, down from 1.8 million square feet in 2023.
  • Roughly 310,000 square feet of office space was absorbed during the year, helping reduce vacancy rates slightly to 21.9%, compared to 22.7% the previous year.

These trends reflect continued adjustments in the local office market, with changes in development, occupancy, and availability influencing property values and Hays County Texas property tax assessments

Apartment Market Overview

  • Delivery of 1,860 new apartment units in 2024, up from 1,410 units the previous year.
  • Approximately 1,180 units were absorbed, though occupancy dipped slightly to 88.5%, down from 89.7%.
  • Rent prices rose by 0.6%, while the median sales price per unit declined to $134,800 from $141,950 in the previous quarter.

The apartment sector closed the year with steady absorption and continued construction activity. Data from Hays County CAD highlights a balanced yet shifting trend in occupancy and rental performance.

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Texas Retail Sector

  • Approximately 865,000 square feet of retail space was delivered in 2024, a decrease from 1.18 million square feet the year before.
  • About 1.12 million square feet of retail space was absorbed, with vacancy rates dipping slightly to 7.1%, down from 7.4%.
  • Rental rates held steady at 5.3%, reflecting consistent performance across the retail market.

While new retail construction has slowed, the market continues to show resilience through strong absorption and stable lease rates. Data from the Hays County Central Appraisal District highlights ongoing demand and a healthy retail property environment.

Warehouse Market Overview

  • In 2024, Hays County delivered approximately 782,000 square feet of new warehouse space, marking a slight decline from the prior year.
  • About 698,000 square feet of warehouse space was absorbed, while vacancy rates edged up to 8.9%, compared to 8.5% the previous year.
  • Rental rates remained consistent at $7.42 per square foot, indicating stable market conditions.

These figures point to a warehouse sector that is finding balance, with reliable absorption and steady rental pricing. Hays County Texas property tax assessments reflect these market dynamics in updated property valuations.

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