Commercial Real Estate Market in Palestine, TX
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
262 active listings and 1,165 off-market properties in Palestine, TX.
Market Trends
Palestine, TX spans 514.1 square miles in Anderson County, Texas. Figures below refresh monthly; last updated 31 August 2026.
Office
Office vacancy in Palestine, TX runs 20.2% across the South region in 2025, up from 14.4% in 2019.
Vacancy Rate % in South region
Retail
Retail space in Palestine, TX asks $89/SF to buy. Vacancy runs 5.4% across the South region in 2025, down from 7% in 2020.
Average Sale Price $/SF
Listings
Vacancy Rate % in South region
Industrial
Industrial vacancy in Palestine, TX runs 7.9% across the South region in 2025, up from 6% in 2019. Nearly 2.3x the 2022 low of 3.5%.
Vacancy Rate % in South region
Multifamily
Multifamily vacancy in Palestine, TX runs 11.3% across the South region in 2025, up from 8.5% in 2022.
Vacancy Rate % in South region
Zoning & Land Use
Land Use Mix share of zoned land by category
- Residential 49.8%
- Commercial 24.2%
- Industrial 19.7%
- Mixed use 6.2%
Largest Zones share of zoned land by district
Mixed Residential
Industrial
Highway Commercial
Retail Commercial
Suburban Residential
Palestine, TX zones 11,115 acres across 10 districts. Commercial zoning covers 24.2% of zoned land, residential 49.8% and industrial 19.7%. The largest single district is Mixed Residential at 28.2%. For commercial buyers the practical constraint is that only 43.9% of land carries a commercial or industrial designation.
Mixed Residential (MR)
Mixed residential (MR). The MR district is established to allow a mix of single-family, duplex, zero lot line, multifamily dwellings on lots 6,000 square feet or larger. This district is intended to provide high-density, mixed residential neighborhoods along with customary accessory uses.
Market overview
Demographics & Economy
Palestine, TX has 39,149 residents in 14,305 households. Density runs 76 people per square mile. Median household income here is $57,164 and median gross rent $1,062 a month.
39,149
Population
14,305
Households
2.7
Avg Household Size
39
Median Age
15%
College-Educated
87%
High-School Grad
514.1 sq mi
ZIP Area
76
Density / Sq Mi
$57,164
Median Household Income
$37,199
Median Earnings
$1,062
Median Rent
$182,857
Median Home Value
Tools
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| Massey Lake | — | — |
| Tennessee Colony | — | — |
| Butler | — | — |
| Elmwood | — | — |
Frequently Asked Questions
What zoning applies to commercial property in Palestine?
Palestine, TX zones 11,115 acres across 10 districts, of which 24.2% is commercial and 19.7% industrial. The largest single district is Mixed Residential at 28.2% of zoned land. Mixed residential (MR). The MR district is established to allow a mix of single-family, duplex, zero lot line, multifamily dwellings on lots 6,000 square feet or larger. This district is intended to provide high-density, mixed residential neighborhoods along with customary accessory uses. Residential zoning covers 49.8% and open space 0%.
Where does Realmo's Palestine market data come from?
Realmo compiles Palestine, TX figures from 235 active sale listings, 27 active lease listings, 1,165 tracked off-market properties, the current Palestine zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 235 active for-sale and 27 active for-lease listings in Palestine, TX. These are ASKING figures from live listings, not closed-transaction prices, and a segment carried by a handful of listings reads as indicative rather than an average.
- Vacancy rates
- Published per-sector market series, taken at the metro level where one exists and otherwise at the Census-region level — a chart reading "in <region> region" is a regional number, not this city's.
- Zoning and land use
- The current municipal zoning release: 11,115 zoned acres across 10 districts. Shares are of zoned land, so parcels the release leaves unclassified are excluded from the mix.
- Refresh
- The monthly aggregates close at the end of the previous month, so 31 August 2026 — not today — is the honest last update.
- Known limitations
- office vacancy is reported at South region level, retail vacancy is reported at South region level and industrial vacancy is reported at South region level.
- Coverage
- Metrics below the 10-observation threshold fall back one geographic level. The geography used is named on each figure.
Compiled by the Realmo Data team · reviewed 31 August 2026 · report a data issue
