Market Update In the current market, Houston is continuing to see new people coming to the city. While the country continues to deal with high interest rates, high inflation, and various other political and cultural pressures, Houston remains a solid city and is welcoming to locals relocating from out-of-state and international migrants. This is having a direct impact on where Houston continues to grow. Based on our findings, these are a few corridors that are seeing significant growth:
One of the fastest growing parts of Houston MSA, this area is seeing major growth as more and more residents looking for affordable homes are looking at this area. Recognized master-planned community developers such as Johnson Development have already announced development of thousands of homes in this area.
On the commercial side, Dhanani Private Equity Group (DPEG) recently acquired a shopping center in this corridor. Other developers such as Nassar Group are actively developing in this area as well.
XAG team is currently listing several properties in this corridor and is also involved in buyer-side transactions in this corridor. For more information please see the [properties page] or reach out to us.
Magnolia sits in between Tomball and the Woodlands. Magnolia’s population has doubled since 2020. This area is attracting home buyers and renters that are looking for the same high-quality living that the Woodlands offers, but at a more affordable price point.
City of Magnolia is actively seeking new commercial development and has lowered tax rates from $0.4529 to $0.2509 per $100 in valuation. Tannos Development Group and Maritia LP are developing a $1 billion, 200-acre mixed-use project between FM 1774 and 1488. Additionally, Magnolia Crossing broke ground on two retail buildings along FM 1488 in August 2026.
XAG’s development arm has invested heavily in this area with one 326-unit multifamily project. XAG also broke ground on a 30,000-square-foot retail project in August 2026. This retail site sits in front of the 326-unit multifamily project. XAG’s CRE advisors are helping other buyer clients looking in the area.
This is no longer a secret, but there is so much more to be done in Fulshear. Fulshear sits west of Katy and southwest of Houston, in Fort Bend County — one of the fastest-growing suburbs in the entire state going into 2026.
The Texas Heritage Parkway expansion connecting the Westpark Tollway to I-10 meaningfully cut travel time into central Houston. Growth accelerated so fast that in 2023, Fulshear’s city council actually considered a development moratorium before deciding to let growth continue. From 2010 through mid-2024, the city issued over 15,000 single-family permits, led by master-planned communities from Taylor Morrison, Toll Brothers, and Highland Homes. What makes Fulshear so attractive is the high-income residents that have relocated to this part of town.
Fulshear Central, a 130,000-square-foot mixed-use retail/restaurant/office project near Cross Creek West, broke ground in 2024. XAG Group is also building Fulshear Lakes Town Center right across from one of the most desirable Houston neighborhoods — Weston Lakes. This will be a 45,000-square-foot retail development with walkable green spaces, serving as a mini town center for residents of the area. This project will be complemented by a 300-unit multifamily development.
If you are interested in any of these growth corridors, reach out to one of the XAG advisors.
Where is Houston growing fastest in 2026?
Richmond-Rosenberg, Magnolia, and Fulshear are among the fastest-growing areas of Houston, driven by master-planned community development, retail expansion, and continued in-migration to the metro.
What are the best Fort Bend County growth corridors for commercial real estate?
Richmond-Rosenberg and Fulshear are two of Fort Bend County’s most active growth corridors, with major residential developers and retail projects breaking ground in both areas.
Is Fulshear a good place to invest in commercial real estate?
Fulshear has seen rapid residential growth since 2010, with commercial development now following — including projects like Fulshear Central and XAG’s Fulshear Lakes Town Center.
Who tracks growth corridors for Houston commercial real estate investors?
XAG’s CRE advisors track submarket data across Houston’s growth corridors and work directly with buyers, developers, and investors in these areas.
