Houston, one of the most robust economies in the United States, has stood out in recent years for its continuous growth in strategic sectors such as real estate, retail and energy. With a population exceeding 2.3 million and an annual growth rate of 1.5%, the city offers a dynamic and diverse market for investors. Below, we explore Houston’s most profitable businesses and how to take advantage of these opportunities to maximize ROI in 2024.
Commercial Real Estate Franchises
The commercial real estate industry in Houston remains one of the safest and most profitable investments. In 2024, despite the challenges arising from interest rates and market conditions, the sector continues to grow. According to the National Association of Realtors, the value of the commercial real estate market in Houston has grown 6% in the last year, driven by demand for multifamily and commercial living spaces, especially in emerging and rapidly developing sectors on the periphery of the city.
The growth is supported by continued demand for space due to population growth and the attraction of new residents and businesses to the city. Multifamily developments have seen a boom, with 4.2% annual growth in new construction and an occupancy rate of up to 95% in urban areas.
For investors, this context represents an interesting opportunity: although financial challenges require in-depth analysis, Houston’s real estate market continues to offer profitable options in segments such as multifamily and commercial property management.
Is it the right time to enter the real estate market in Houston?
For investors willing to weigh risks and benefits, the real estate market in Houston offers multiple franchises in property management that can reduce the operational burden, in addition to a proven business model that allows profitability and scalability. And if we talk about scalability, we talk about franchising Property Management Inc. (PMI) .
PMI is one of the leading franchises in property management, especially in the multifamily and commercial sector. The brand offers an attractive business model for investors looking to participate in the real estate sector without the daily operational burden, providing comprehensive property management and maintenance services.
- Initial investment amount: between $67,875 and $139,250
- Franchise fee: approximately $59,900
- Royalties: 6% of sales
With PMI, franchisees benefit from a robust training program and support network that makes it easy to manage residential and commercial properties. This franchise allows investors to diversify their portfolio in a growing real estate market, especially in a sprawling city like Houston.
Retail Consumer Electronics Franchises
The retail sector in Houston has shown a growth of 3.8% in the last year, according to data from the Texas Retailers Association, driven largely by digitization and the combination of physical and online experiences.
The city has nationally recognized shopping centers, such as The Galleria and River Oaks Shopping Center, which receive millions of visitors annually. This sector has benefited from the stabilization in post-pandemic consumption habits, where consumers combine online shopping with visits to physical stores.
In Mexico, the retail sector has reported similar growth, with a 4% increase in annual sales, especially in electronics and consumer staples. This context reflects an expansion trend that Houston is also following, where brands are looking to offer innovative experiences in their stores.
Investing in retail franchises in Houston could allow you to capitalize on these trends, leveraging a business model that adapts to today’s market and the demands of modern consumers.
How to position yourself in the retail market?
The opportunities in this sector are wide: from convenience stores to consumer electronics franchises, Houston offers a favorable ecosystem for retail businesses. Incorporating omnichannel strategies, which combine physical and online experiences, can be a great way to maximize profitability in an ever-evolving market. One franchise that quickly adapted to this context is TECHY.
TECHY is a franchise specializing in the repair of electronic devices and consumer products, such as smartphones, tablets, and computers. The brand also offers the possibility of diversifying its business, adding the sale of home automation accessories and services, which is ideal in a market like Houston, where consumers are looking for innovative technological products and quick solutions.
- Initial investment amount: between $80,000 and $120,000
- Franchise fee: approximately $30,000
- Royalties: between 6% and 8% of sales
This franchise is ideal for those looking for a profitable and adaptable business in the technology sector. TECHY not only leverages the demand for electronic devices, but also offers a complete experience to its customers by integrating product repair and sales services, facilitating a versatile and sustainable business model.
Energy Franchises
Houston, known as the “Energy Capital of the World,” continues to be a fundamental pillar in the U.S. economy. Texas produces more than 40% of the country’s oil, and Houston is home to a large portion of the world’s largest energy companies. However, the sector has begun to diversify, integrating more and more renewable energy projects.
According to the Energy Information Administration, Texas leads in wind and solar energy production, reflecting a trend toward a more sustainable energy future, meaning that there are opportunities in both traditional and renewable energy sectors. Energy consulting franchises, as well as those for energy saving and efficiency technologies, are booming and offer a safe investment path in a city where energy is a priority.
Why Invest in Houston’s Energy Sector?
The diversification of the energy matrix in Houston offers a unique opportunity. Franchises related to energy services or energy consulting can capitalize on this trend of transition to renewables, taking advantage of the knowledge of the local market and the infrastructure of a city that continues to lead the sector. One brand that is making waves in terms of energy efficiency is SuperGreen Solutions.
SuperGreen Solutions offers a unique opportunity for entrepreneurs interested in joining the green technology market. This franchise provides renewable energy solutions for both residences and businesses, opening an accessible and profitable path in a sector with exponential growth and a positive impact on the environment.
- Initial investment amount: $115,850 and $171,150
- Franchise fee: approximately $49,500
- Royalties: 2.5% of sales
Investing in a SuperGreen Solutions franchise allows investors to capitalize on the trend toward renewable energy and energy efficiency in Houston, in an industry that is becoming increasingly relevant. This business model offers franchisees the backing of a proven system and support network that facilitates growth in a key market.
*Data as of the date of publication of this article
*Values expressed in US dollars
Find Your Own Profitable Business in Houston
Choosing the right sector to invest in Houston can be challenging, but the potential for return is high for those who make informed decisions. At Interlink FBC, our team of franchise experts is ready to offer you personalized guidance and help you discover which of these opportunities is right for you.
Would you like to explore more about these or other investment opportunities in Houston? Schedule a free consultation with our franchise specialists and learn how you can start building your business successfully.
