Commercial real estate developers drove wealth creation in Houston from 2000 to 2006. Not anymore, says US Trust SVP Paul Ehrsam. Now most of Houston’s wealth is being created by oil and gas entrepreneurs, but we still benefit—Paul tells us he’s advising them to buy income-producing real estate to diversify their portfolios. These high-net-worth investors are particularly drawn to multifamily, warehouses, and net-leased projects. Another popular investment: income-producing farmland.

Paul tells us many of his clients are investing into European real estate because their cycle is a few years behind ours, but most prefer to invest locally because they understand the market and like to see what they own. Paul says many of these private acquisitions are happening in the popular suburbs like Katy, Northwest Houston, and Kingwood. He admits the market is getting heated, but says he’s still finding opportunities for his clients to invest.