June 11, 2025 • General
If you’ve spent any time in commercial real estate lately, you’ve probably noticed a trend: more and more investors from outside the Texas Panhandle are starting to buy property in Amarillo. While cities like Dallas, Houston, and Austin usually get most of the attention, Amarillo has quietly been gaining traction as a smart place to invest—especially for buyers looking for stable returns without the high price tags of larger markets.
So what’s bringing these out-of-state investors here? Let’s break it down.
Steady Growth Without Big Swings
One thing Amarillo offers that bigger markets often don’t is stability. Instead of wild ups and downs, the economy here tends to grow at a steady, manageable pace. Industries like agriculture, healthcare, education, and energy help keep things balanced, even when other markets get volatile.
For investors who want reliable cash flow without constant surprises, this kind of predictable market is appealing.
Affordable Prices Compared to Big Cities
Compared to larger metros, Amarillo’s prices are simply more reasonable. Commercial buyers from places like California or New York often find that their money goes a lot further here. A building that might cost $10 million in a coastal city could be purchased for a fraction of that in Amarillo, all while generating solid returns.
The lower upfront cost allows investors to spread their capital across multiple properties, instead of sinking it all into one expensive deal.
Higher Cap Rates
Amarillo also offers cap rates that many investors can’t find in larger cities. It’s not unusual to see cap rates in the 6% to 10% range here, depending on the property type. That’s often much better than what’s available in overheated markets where cap rates are squeezed down to 4% or lower.
For investors looking for stronger income right out of the gate, those higher cap rates are hard to ignore.
A City That’s Growing, but Still Manageable
While Amarillo doesn’t have the explosive growth of a city like Austin, it’s been growing steadily for years. More businesses are moving in, new developments continue to pop up, and the population keeps increasing at a healthy pace. The city’s location along I-40 also makes it a key hub for shipping and logistics, which supports demand for industrial and warehouse space.
For investors, that steady growth creates opportunities to get into a market that’s expanding—but not yet overbuilt.
Texas-Friendly Business Environment
Texas is known for being business-friendly, and Amarillo fits that mold perfectly. There’s no state income tax, regulations are relatively light, and local leadership works hard to attract businesses and encourage development. For investors coming from states where taxes and red tape are much higher, Amarillo offers a much more appealing landscape.
Less Competition, More Room to Negotiate
In some of the country’s hottest markets, competition for commercial deals is intense, and bidding wars are common. That’s not as much the case here. In Amarillo, deals tend to move at a more reasonable pace. That gives investors a chance to perform real due diligence, negotiate terms, and build solid relationships with local brokers, lenders, and property managers.
Final Thoughts
While it might not have the flash of bigger markets, Amarillo offers a combination that many investors are starting to recognize: solid returns, reasonable prices, steady growth, and a business-friendly climate. As more out-of-state investors search for stable places to put their money, Amarillo’s commercial real estate market is earning a well-deserved spot on their radar.
If you’re considering investing in Amarillo or just want to explore the market, Wellborn Real Estate is ready to help you navigate the opportunities here.