In this episode of the Texas Land Guys Podcast, brothers Tom Dosch and Tim Dosch pick up where they left off, looking at the Texas commercial real estate market as the year heads into its final quarter. Houston's industrial market is booming, with record absorption, rising land prices, and massive investment tied to AI infrastructure. The brothers discuss deals involving SpaceX, the growing demand for industrial sites, and why some Houston land values have increased as much as fivefold. But with the best sites becoming harder to find, they ask how long this momentum can last. They then explore the risks behind the AI boom. Could rising debt, regulation, or a slowdown in data center development change the outlook for Texas industrial real estate? Tom and Tim also offer advice to landowners holding out for a potential data center deal, especially when a credible industrial buyer is already at the table. They explain why opportunity cost matters, why waiting for the perfect offer can backfire, and how emotions like greed and fear can lead landowners to miss good opportunities. Finally, Tom and Tim examine the retail, hospitality, storage, and senior housing markets across Texas. Grocery-anchored retail and suburban commercial development are benefiting from population growth, while other property types remain more challenging. They wrap up by discussing interest rates, the broader economic outlook, and why Texas remains well positioned despite the uncertainty. Their message to landowners is clear: property values change with the cost of capital and the rents a property can generate, not simply what someone was willing to pay a few years ago. Key Takeaways Houston's industrial market is exceptionally strong, with record absorption, rising land prices, and major demand from AI infrastructure and data center investment. Industrial land prices in some areas have increased as much as fivefold, while strong demand is pushing developers farther out from established growth corridors. Utility access, wetlands, roads, and site readiness are becoming major challenges as the supply of easy-to-develop industrial sites shrinks. The AI boom could continue driving Texas growth, but debt burdens, regulation, and limits on available power create risks. Landowners should weigh a credible offer today against the uncertainty of waiting years for a potential data center buyer. Retail development is expanding alongside population growth, particularly grocery-anchored centers, neighborhood retail, and suburban power centers. Self-storage, senior housing, and hospitality activity varies by market, with oversupply and competition limiting opportunities in some areas. Texas remains attractive because of continued population growth, job creation, corporate relocations, and investment from major companies. In This Episode [00:00] Intro and the Texas real estate market heading into year-end [03:48] DFW's industrial growth and the search for developable sites [06:36] AI infrastructure, manufacturing, and the next wave of Houston growth [08:36] Could AI regulation or a market correction slow industrial development? [12:24] Should landowners wait for a data center buyer? [17:16] Why landowners struggle to let go of unrealistic price expectations [23:38] Houston's single-family market and the shift away from far-out development [36:36] Retail growth, grocery-anchored centers, and expanding suburbs [44:37] Interest rates, inflation, and the outlook for the final quarter [52:42] Why the hosts remain optimistic about Texas [55:22] Wrap-up and a look ahead Resources and Links Podcast https://podcasts.apple.com/us/podcast/welcome-to-the-texas-land-guys-podcast-the-art/id1788566687?i=1000682586353 https://dmre.com/ Tim Dosch https://www.linkedin.com/in/tim-dosch-67a07899 https://dmre.com/ https://ascentinv.com/ https://100xharvest.org/ Tom Dosch https://www.linkedin.com/in/tom-dosch-37263b3b/ https://dmre.com/ https://ascentinv.com/ https://100xharvest.org/