Note: This is a follow up to the “'West Coast Money' is a Fallacy!” article in which the data clearly depicted contradictory evidence to the supposed power of the “West Coast Money” theory - whereas the previous article looked at Florida, this article focuses on Texas.

The “West Coast Money” theory derives from California being a high-tax state and that most net lease buildings across the United States are owned by a California buyer/investor. This article will shine some light on why this is not the case through an analysis of net lease owners in Texas. In our previous article on this topic (focusing on Florida) it was proved the largest contingency of owners in Florida of private STNL Walgreens and CVS properties came from instate investors at 53.81% and California/ West Coast buyers were only a small percentage of 6.57%. The former article proved that this percentage was significantly lower than previously thought. However, the “California money” pitch theory deserves a second look; it has been previously disproved using Florida's statistics about lease ownership and their locality. For this article, we will further debunk this theory using Texas.

To provide evidence that West Coast Money is a fallacy, a sample was taken of all Walgreens and CVS properties in the state of Texas. Texas is always been targeted by real estate investors because of the region's strong growth and strong real estate assets. Due to its central location in the United States, the state of Texas is an attractive and large market in which buyers may turn profits by investing. Texas is one of the fastest-growing states in the nation in population growth over the last few years according to the U.S. Census Bureau. Texas has a plentiful amount of net lease buildings, and since Texas is closer to California, we would expect a larger presence of California owners.

There are a total of 1,268 Walgreens and CVS sites in TX.STNL sites make up the majority of locations in the state - which is the same case in Florida (60.56%). However, there were more corporately owned sites in Texas when compared to Florida (39.91% vs. 25%). The data suggests that the abundance of land in Texas lowered the amount of in-line locations as well compared to Florida (4.26% vs. 11.55%).

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A Second Look at the "California Money Pitch"

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