Experts in the world of commercial real estate understand just how saturated cities like New York and San Francisco are. In order to find long-term success, investors must begin to set their sights on less sought-after areas, commonly referred to as secondary and tertiary markets. With that said, below are some of the more thriving cities in the United States for commercial real estate.
With just how big the tourist industry has gotten in Nashville in recent years, it should come as no surprise that many are beginning to take advantage of its commercial real estate. According to the city’s economic summary, the cost of business here is 20% less than the country’s average.
More and more companies are beginning to relocate or open new branches in Nashville, contributing to its 1.8% growth rate between the years of 2010 and 2015; over double the national average. Additionally, Music City’s job growth in those five years was over 20%.
Atlanta’s job numbers have been growing at a steady pace in the last year, and continued growth is expected. The city is flush with technology firms, all of which tend to be great contributors to an economy’s job numbers. As more and more jobs are created, the need for homes increases as well, hence why many consider apartment buildings and housing rentals to be some of the wisest commercial real estate properties to invest in. It is important to keep in mind however, that Atlanta’s real estate market fell victim to the country’s last recession, making timing all the more important.
Salt Lake City
Utah may be one of the last states investors consider when looking for prime commercial real estate, but the capital of Salt Lake City is home to many individuals exceeding a six-figure salary. Because of this, housing is not an issue for many people. On the other hand, those looking to invest in commercial real estate may find the most success in retail. Focusing on entertainment-based storefronts and properties can be extremely profitable for a fairly wealthy community.
This collegetown capital is bustling with millennials, with people ages 25-34 making up more than 23% of the city’s population. With the prestigious schools of Duke University and the University of North Carolina located nearby, the influx of young workers creates a larger demand for affordable housing, much like Atlanta.
However, most of these recent graduates may be hard-pressed to afford a luxury condo, so those in commercial real estate should consider investing in rental apartments. A building with affordable units catering to younger crowds are extremely valuable in Raleigh, as the city’s home affordability is slightly on the higher end.