A city that’s especially attractive for commercial real estate investment is typically characterized by low vacancy rates, low commercial real estate property prices, high demand for commercial properties, a strong economy and a low unemployment rate. Other desirable factors include rent growth expectations, overall future demand and resiliency in an economic downturn.
When considering those facts, experts believe these are the very best cities for commercial real estate investment.
Las Vegas, Nevada
Experts predicted that 2018 will be an even better year than 2017 for Las Vegas real estate, which was a banner year itself as the city’s third best ever, reports Mashvisor.com. Its 3.7 percent employment growth was the third-highest overall , and it experienced double-digit percentage growth in home values too. The Las Vegas-Henderson-Paradise metro area was ranked No. 1 among the Top 100 largest metropolitan areas in the U.S. forecasted in 2018 for sales and price growth. Whether you’re interested in a commercial real estate investment or purchasing one of the many homes for sale in Las Vegas, this year is a very good time to move forward with those plans.
San Francisco, California
The City by the Bay is hot – in fact, some say San Francisco is the very best commercial real estate market to invest in now. In 2017, it ranked No. 12 among the world’s top 30 largest commercial real estate destinations, reports CEOWorld Magazine
Its average rent price per square foot for retail space and office space is the highest in the nation and growing, while the booming economy in the S.F. Bay Area continues to push the residential as well as the commercial real estate market to blossom.
Atlanta is experiencing one of the biggest booms in the country and shows no signs of slowing. One of the fastest growing cities, the metro area grew by 180,000 households over five years, from 2012 to 2017, representing one of the largest gains of any city in the United States over the same period. The number of jobs here increased significantly as well, at about 20
percent during that same time, outpacing national average growth which was around 10 percent.
In 2017, the office market had an average vacancy rate of 11.7 percent, with 12-month rent growth at 4.1 percent, with the national average for office vacancy rate at around 10.5 percent and rent growth about 3 percent. A few of the industries driving Atlanta’s strong economy include financial services, IT, technology and transportation.
The Mile High City had one of the lowest unemployment rates out of 50 U.S. markets with a population of a half-million or more, at just 2.8 percent. It also ranked No. 3 on the US News and Den World Report of Based Places to live based on quality of life, overall desirability and job availability. Its strong economy is based on not only the healthcare and marijuana
industries, but tech, aerospace, oil, natural resources, telecommunications and transportation. Investing in the commercial real estate market here sooner rather than later is likely a very good idea.