Search commercial real estate for sale in Waco, TX with real estate experts, The Truss Team.
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.
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Waco, TX, has experienced significant economic growth in recent years, making it an attractive location for commercial real estate investment. The city's economy is diverse, with strong sectors in healthcare, education, manufacturing, and agriculture. The presence of major employers like Baylor University, SpaceX, and L3Harris Technologies has contributed to job growth and a stable economy. Additionally, Waco's strategic location along the I-35 corridor between Dallas and Austin makes it a prime location for businesses looking to expand or relocate.
Compared to larger cities like Dallas and Austin, commercial real estate in Waco offers more affordable pricing and better value for investors. The cost of living and doing business in Waco is lower, making it an attractive option for businesses looking to reduce overhead costs. The city also offers various incentives and tax breaks for businesses, further enhancing its appeal for commercial real estate investment.
Waco is undergoing significant growth and development, creating opportunities for commercial real estate investors. The city has seen a surge in residential and commercial construction, including new retail centers, office buildings, and industrial parks. The revitalization of downtown Waco, led by projects like Magnolia Market at the Silos, has also attracted attention and investment to the area. With ongoing development projects and a growing population, Waco offers ample opportunities for investors to capitalize on the city's growth.
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.
Whether you're interested in office spaces, retail locations, or industrial properties, we have the expertise to guide you through the process.
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!
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.