Opportunity in a Thriving Border City
Laredo, Texas
Thinking of how to start or how to grow your medical practice? Practice Real Estate Group recently advised a doctor starting a veterinary clinic in Laredo, Texas. During the search, we found an incredible opportunity for our client and a unique opportunity for medical providers more broadly. Read on to learn the opportunity Laredo presents to entrepreneurial doctors and healthcare systems.
Growing Population
The population of Laredo, Texas currently sits at 267,780 residents. The greater metro area population is 340,000. Laredo has exhibited consistent population growth for many years, a number that continues to rise. Over the next 15 to 20 years, Laredo is expected to nearly double in population size. Within recent years, Laredo has experienced a housing and infrastructure boom that continues to prevail. Extensive infrastructure changes have been implemented alongside plans for continued improvement, one of which is the potential creation of a fifth international bridge between Laredo and Mexico.
Economic Opportunities
One of Laredo’s most significant attributes is its status as a major hub for trade between the United States and Mexico. Laredo’s bustling economy is driven by industries such as
- logistics
- transportation
- and international trade.
According to the Texas Economic Development Corporation, the Port of Laredo is the number one inland port on the U.S.-Mexico border and is consistently a top U.S. port overall. Almost 1 billion dollars of goods pass between Laredo and Mexico daily.
According to a 2022 survey, Laredo ranked as the best city to start a business, a statistic backed by Texas Governor Greg Abbott. Laredo provides accessible financing, a favorable business environment, and low business costs. This has been exhibited in the expansion of large-scale chains to Laredo in recent years. While this does not specifically pertain to medical care in itself, large-scale companies such as Layne’s Chicken Fingers, would not expand to geographic areas unless they saw economic opportunities.
The city offers incentives and support for businesses. The Laredo Chamber of Commerce currently serves over 600 businesses including locally owned small businesses, banks and retail chains, service providers, etc. In 2022, the U.S. Department of Commerce invested $1.5 Million to Support Business Development in Laredo, Texas.
An Underserved Population
Laredo has consistently been classified as a medically underserved area for decades, forcing residents to travel outside of the city to receive medical attention. Many residents regularly seek healthcare in cities outside of Laredo, including Nuevo Laredo, other cities in Mexico, and other cities in Texas. A 2023 Community Health Needs Assessment conducted by the Texas Health Institute listed the priority health concerns in need of addressing are diabetes, obesity, mental health, preventative health care, child health, and oral health care. Over one-third (34.8%) of community residents indicated they traveled outside of Laredo within the past year to receive medical, dental, or mental health care. Specifically, almost one-half (46.2%) of residents traveled outside of Laredo for dental care. This presents an opportunity to close the evident treatment gap.
Since being sworn into office, Laredo mayor Dr. Victor Trevino has deemed his top priorities to be expanding healthcare access and building stronger cross-border relationships. While the public health of Laredo increased slightly in 2023, Trevino believes there are still vast improvements to be made. At the beginning of 2024, Trevino recognized bringing more medical resources to Laredo as his top goal. One of Trevino’s specific goals is to increase pediatric ICU services in Laredo. Laredo’s low rank is access to primary care providers and exhibits a gap in need of filling. There is also significant demand for access to specialty care, including, but not limited to, gynecology, pediatrics, cardiology, and psychiatry.
Medical Opportunity
The combination of Laredo’s classification as a medically underserved population alongside its business-friendly environment provides an excellent opportunity for those looking to start a medical practice in Laredo.
Laredo is known for its strong sense of unity and for fostering tight-knit communities. To newcomers, this tight-knit nature may appear daunting and act as a barrier to new business in both the medical sector and abroad. However, our recent work alongside a doctor starting a veterinary clinic in Laredo debunks this fallacy. Our client was the only doctor in his field who was not from Laredo. However, in just a mere four months since opening, our recent client has already looked to expand based on such dramatic influxes of demand. Laredo’s tight-knit community does not reflect the ability to start a successful medical practice and instead offers a robust base of clientele.
Lower Costs
Running a business in Laredo incurs lower costs compared to state and national averages. The cost efficiency is evident in Laredo’s commercial real estate market. The average rent for commercial real estate in Laredo is around $20.36 per square foot, yet this varies on property type and location. This is much lower as compared to real estate costs in major cities across Texas. In 2023 the average office rent
- in Austin rested at $41.81 per square foot
- Houston at $31.12
- San Antonio at $27.34
Overall, purchase prices and rental rates for office and industrial spaces are significantly lower in Laredo, which helps lower the overhead costs for businesses.
Laredo’s commercial real estate market is experiencing robust growth, a pattern expected to continue due to the attractive market for logistics and manufacturing businesses that further boost the demand for new industrial spaces.
Laredo has a favorable cost of living compared to both state and national averages as well. The overall cost of living in Laredo is approximately 12% lower than the national average and 5% lower than the Texas state average.
In terms of residential real estate, Laredo, Texas is often characterized by its affordability and moderate activity. Housing expenses are about 40% lower than the national average. The median home value in Laredo is approximately $209,115. To compare, the median home price in Texas as a whole is currently $348,000. In the past year, 1,628 residential properties were sold in Laredo, reflecting a fairly active market.
Demographics
A 2022 Demographic Outlook reported a 23.8 decrease in Laredo’s poverty rate since 2010. Laredo’s financial landscape has exhibited growth for those looking to start a business, especially when it comes to necessary services such as healthcare. In the past decade, the median household income for individuals within the 45 to 64 age group has demonstrated an increase of nearly $20,000, increasing from $55,269 in 2012 to $74,340 in 2022.
Education
Educational opportunities in Laredo have risen significantly in recent years. Higher levels of education provide a more skilled workforce thereby stimulating increases in economic activity. There are currently six 6A high schools in the Laredo greater metro area, with an enrollment of 2,275 students and above. The State of Texas has continuously awarded Laredo public schools with excellent ratings. In addition, Laredo offers an array of private school options.
Safety
Laredo is considered to be a very safe city. The FBI has routinely ranked Laredo among the safest cities in the country. In 2023 smartasset ranked Laredo, Texas as the 7th safest city in the United States. As a large land port, Laredo maintains a strong presence of multiple law enforcement agencies with strict government control, which has significantly contributed to its safety. The U.S. Border Patrol and U.S. Customs and Border Protection are heavily involved in securing the border and preventing illegal activities such as drug trafficking, illegal immigration, and human smuggling. Their presence strongly mitigates cross-border crimes and plays a significant role in enhancing overall security in the region. The Laredo Police Department works closely with federal agencies to address local crime issues as well. Overall, Laredo has a strong commitment to public safety and creating a secure living and business environment.
Unique Landscape
There is a significant demand for a variety of medical specialties in Laredo. With the public sector dominating the greater community, many businesses have contracts with government agencies. For example, local veterinarians negotiate contracts with Border Patrol and U.S. Immigration and Customs Enforcement (ICE) for veterinary treatments for working dogs.
Laredo’s classification as a bilingual city provides business owners with a variety of customers regardless of the sector.
As a result, it is extremely important to consider Laredo’s cultural environment. In regards to medical care, there is a specific demand in Laredo to increase the availability and efficiency of Spanish translators during appointments and ensure the translation of all materials into Spanish. The Texas Health Institute encourages providers to involve patients in treatment decisions and take ownership of their health from their cultural perspective. This calls for the need to train hospital and clinic staff on culturally appropriate treatment and methods.
As a significant trade and manufacturing hub, Laredo ensures a steady demand for medical services with a robust patient base. For those curious about real estate opportunities in Laredo’s unique and flourishing market, contact us to learn how to grow your medical practice here.
If you are looking to grow your medical practice, Laredo offers benefits from its rapidly growing population to its lower operational costs. The city’s underserved medical landscape and supportive business environment make it an ideal location for healthcare professionals. Whether you’re considering starting or expanding, understanding how to grow your medical practice in this border city can lead to success. The opportunities here are vast, from addressing public health needs to tapping into robust economic and demographic growth. If you’re ready to take the next step, Laredo could be the place for growing your medical practice.