Strategically located on the Gulf Coast, Southeast Texas continues to attract interest in industrial and logistics properties, particularly due to the expansion of the Sabine Neches Waterway. This project, designed to accommodate larger vessels, enhances the region’s appeal as a critical hub for energy and shipping. “The Channel Improvement Project will increase opportunities for use of the waterway and enhance economic benefits for Southeast Texas, the state of Texas, and the United States,” said the Sabine Neches Navigation District (SNND). The SNND is leading the project to deepen the Sabine Neches Waterway from 40 feet to 48 feet. Combined with refinery upgrades and pipeline expansions, these developments reinforce the area's importance to the energy sector and create fertile ground for future commercial investment.

In addition, local governments are actively partnering with institutions like Lamar University and Lamar Institute of Technology to implement workforce training programs. These initiatives are key to maintaining a pipeline of skilled labor, supporting industrial growth, and attracting new businesses to the area.

While broader economic factors such as trade policy uncertainty, delayed Federal Reserve rate cuts, and persistent inflation concerns continue to influence investor sentiment nationwide, Southeast Texas is demonstrating resilience. Historically, the region weathered the Great Depression better than many areas due to its oil industry and port infrastructure. Today, similar dynamics continue to provide a buffer against national headwinds.

We’re not seeing explosive sales activity, but the market remains steady. In fact, leasing activity has picked up, and there’s been a noticeable uptick in investment capital entering the market. Despite signs of distress in other regions, we’re seeing measured optimism here. Deals are still being made—just with more creativity and cooperation. Borrowers and lenders alike are showing greater patience and flexibility to get transactions across the finish line.

At Coldwell Banker Commercial Arnold and Associates (CBCAAA), we've built a reputation as the go-to commercial real estate experts in Southeast Texas. With a proven track record in industrial real estate and a deep understanding of the local market, we’ve helped shape the region’s growth. Our experienced team leverages strong industry relationships and local knowledge to identify high-potential opportunities tailored to our clients' investment goals.

If you're looking to navigate this resilient and evolving market, we're here to help you do it with confidence and insight. Reach out to us with any questions you may have via phone or email or we will be happy to schedule an appointment for a personal meeting.

Thank you for your interest in CRE, have a wonderful and safe summer.

Best wishes,

Sheri Arnold, CCIM

Owner & Lead Broker

Email: sheri@cbcaaa.com

Cell: 409-659-7977

Office: 409-833-5055

IABS