The chart in the previous chapter includes a comprehensive analysis of key factors such as population growth, household income growth, rent growth, rent affordability, and recession resilience. This data can provide valuable insights into the most promising markets.
In this write-up, we present the top 10 U.S. Metropolitan Statistical Areas (MSAs) for commercial real estate investments based on these critical indicators.
1. Austin-Round Rock-Georgetown, TX
Austin-Round Rock-Georgetown is our top pick for commercial real estate investments. This rapidly growing Texan city boasts impressive population growth, strong income growth, and a resilient economy that has weathered past recessions well. Its flourishing tech and innovation sectors have driven significant demand for office, retail, and industrial spaces.
2. Raleigh-Cary, NC
The Raleigh-Cary MSA offers lucrative opportunities for commercial real estate investors. With robust population growth, a highly educated workforce, and strong income growth, this region has become a hub for research, technology, and innovation. This thriving market presents promising prospects for various commercial real estate segments.
3. Atlanta-Sandy Springs-Alpharetta, GA
Atlanta-Sandy Springs-Alpharetta ranks third on our list, thanks to its remarkable population growth and household income growth. The city’s diverse industries, including film, entertainment, and technology, attract a wide range of businesses and residents, driving demand for commercial spaces across multiple sectors.
4. Dallas-Plano-Irving, TX (MSAD)
Dallas-Plano-Irving is another Texan city offering excellent commercial real estate investment opportunities. With substantial population and income growth, the city’s diverse economy, which encompasses healthcare, technology, and finance sectors, ensures a steady demand for commercial properties.
5. Charlotte-Concord-Gastonia, NC-SC
Charlotte-Concord-Gastonia is a lucrative market for commercial real estate investors, thanks to its booming financial sector, which contributes to its growth and prosperity. Significant population and income growth make this city an attractive location for businesses, driving demand for office, retail, and industrial spaces.
6. Phoenix-Mesa-Chandler, AZ
Phoenix-Mesa-Chandler is another attractive market for commercial real estate investors. The city’s significant population growth and consistent income growth create a favorable environment for businesses. Furthermore, the city’s affordable rents and diverse economy, spanning industries such as aerospace, healthcare, and technology, make it an appealing location for commercial property investments.
7. Denver-Aurora-Lakewood, CO
Denver-Aurora-Lakewood ranks seventh on our list due to its strong population growth and income growth. The region’s thriving economy is driven by energy, aerospace, and technology industries. These factors, combined with its beautiful scenery and outdoor attractions, make it a desirable place for businesses and residents, fueling demand for commercial real estate.
8. Nashville-Davidson–Murfreesboro–Franklin, TN
The Nashville-Davidson–Murfreesboro–Franklin MSA offers ample opportunities for commercial real estate investors. Known as “Music City,” Nashville has a diverse economy that includes tourism, healthcare, and technology sectors. With solid population growth and income growth, the city’s commercial real estate market has great potential for investors.
9. Orlando-Kissimmee-Sanford, FL
Orlando-Kissimmee-Sanford is a popular tourist destination, attracting millions of visitors each year. As a result, the city’s economy thrives on tourism, hospitality, and entertainment industries. Its notable population and income growth also contribute to the rising demand for commercial real estate, making it an ideal market for investors.
10. Seattle-Tacoma-Bellevue, WA
Rounding out our top 10 is the Seattle-Tacoma-Bellevue MSA. Known for its thriving technology sector, this metropolitan area has experienced considerable population growth and income growth. With major tech companies like Amazon and Microsoft headquartered in the region, the demand for commercial real estate, especially office space, remains strong.