Texas REALTORS® Secure Legislative Wins for Commercial Real Estate

The 89th Texas Legislative Session delivered a slate of new laws that will directly benefit commercial real estate professionals. From streamlining office-to-residential conversions to easing restrictions on multifamily and mixed-use developments, several bills backed by Texas REALTORS® are set to take effect on September 1. Notably, S.B. 2477 and S.B. 840 aim to reduce regulatory hurdles in urban areas, helping developers respond more quickly to shifting market demands. Additional legislation provides more oversight of water infrastructure, wildfire preparedness, and increased transparency in Public Improvement District (PID) processes—with new publishing requirements set to take effect January 1, 2026.

Looking ahead to November, Texans will vote on constitutional amendments that could bring further changes. These include a significant increase in the business personal property tax exemption – from $2,500 to $125,000 – and a ban on state taxation of capital gains. Other proposals would dedicate $1 billion to water infrastructure and create new funding sources for technical colleges, showing long-term investment in the state’s growth and workforce. Together, these policy shifts reflect strong advocacy efforts and a focus on keeping Texas a competitive and business-friendly environment for commercial real estate.

Source: Texas REALTORS®