Commercial Real Estate in Waco, TX

Map of Commercial Real Estate in Waco, TX

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Waco, TX Real Estate Market

The Waco housing market remains moderately competitive, offering buyers a more balanced playing field. In the most recent data, the median home sale price stood at $275,000—a slight year-over-year decline of 0.068%, indicating relative price stability. Meanwhile, the median price per square foot dropped by 2.4% to $166, suggesting that while demand has cooled slightly, it hasn’t significantly altered the overall market structure. This mild softening may provide buyers with room to negotiate, especially in segments with higher inventory or longer days on market.

$275,000

Median Sale Price

$166

Median Sale Price per Sq. Ft.

123

Total Homes Sold

53

Median Days on Market

Why Get Commercial Real Estate in Waco, TX

What to Consider When Getting Commercial Properties in Waco, TX

If you're exploring commercial real estate opportunities in Waco, TX, we’re here to help you identify high-potential assets, perform financial analysis, and navigate local regulations with confidence. Contact us today to begin your commercial investment journey.

Waco’s commercial zoning classifications—such as C-1 (Office), C-2 (Community Commercial), and O-3 (Office-Limited Industrial)—define what type of business or development is permitted on a property. Before purchasing, confirm the zoning designation and ensure it aligns with your intended use (e.g., retail, medical, office, warehouse). Also, review potential overlay districts or special permit requirements that may apply, particularly in areas near Baylor University, the downtown core, or the I-35 corridor. Misaligned zoning can delay development or restrict operations.

Location is everything in commercial real estate. In Waco, key corridors like Franklin Avenue, Valley Mills Drive, and areas surrounding I-35 offer high visibility and strong traffic counts. Proximity to anchor institutions like Baylor University, the Magnolia Market district, and major employers can significantly enhance tenant demand and customer foot traffic. Also consider access points, parking availability, signage visibility, and drive-by exposure—factors that directly impact business viability and tenant appeal.

If you're purchasing an income-generating commercial property, review the existing leases in detail. Look at lease terms, tenant creditworthiness, renewal clauses, and escalation schedules. Triple-net (NNN) leases are common in retail and medical sectors, shifting expenses like taxes, insurance, and maintenance to the tenant. In Waco’s commercial submarkets, a strong tenant mix—especially national or regional brands—adds stability and resale value. Assess whether the property is fully leased or has vacancy risk, and whether you’re prepared to take on active leasing responsibilities.

Waco offers relatively favorable cap rates compared to larger Texas metros, allowing for strong return-on-investment potential, particularly for office, light industrial, and retail strip centers. Calculate your expected net operating income (NOI) and determine the cap rate based on local comparables. In a buyer’s market like Waco, there's often room to negotiate purchase price or secure properties with value-add potential. Look for underperforming assets where you can improve cash flow through repositioning or lease-up strategies.

Inspect the building thoroughly for structural soundness, ADA compliance, fire safety systems, HVAC age, and roof integrity. Commercial properties in older districts may have legacy issues that require capital improvements or code upgrades. Also evaluate the property’s adaptability—can it be repurposed in the future for different uses (e.g., converting an office to medical, or retail to flex space)? Flexibility adds long-term value, especially in a market like Waco where demand drivers are evolving.

Waco’s economy is diversifying, with notable growth in education, healthcare, manufacturing, and tourism. The city’s revitalization efforts, population growth, and strategic location between Austin and Dallas are drawing more businesses and investors. When buying commercial real estate, consider submarket-specific trends: Downtown Waco is attracting boutique retailers and hospitality players, while North Waco is seeing more industrial and warehouse development. Stay informed on infrastructure projects, tax incentives, and economic development plans that could impact your property's value.

Learn more about commercial real estate opportunities in vibrant Waco, TX!

Whether you're interested in office spaces, retail locations, or industrial properties, we have the expertise to guide you through the process.

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Explore Waco, TX

Welcome to your gateway to Waco, TX – a city of hidden gems and vibrant communities waiting to be explored. We encourage you to explore our Waco neighborhood guide, your essential companion for discovering everything this wonderful city has to offer. From the historic landmarks to the cozy coffee shops, from bustling markets to serene parks, our guide covers it all!

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Cate is a dynamic, performance-driven, goal-oriented professional with 10+ years of experience in the areas of leadership, sales, marketing and real estate. Allison, being raised in the Real Estate business is what gives her the passion behind what she does.