Ten Top Commercial Real Estate Markets in 2019
These Ten Top Commercial Real Estate Markets May Surprise You!
We predict that 2019 is going to be one of the best years for commercial real estate investors. If anything now is going to be the best time to buy for investors. However, not all real estate markets are the same for obvious reasons. Some markets are doing way better than others. So, which are the top commercial real estate markets? Below is our top 10.
Phoenix, AZ is one of the most popular States and cities for commercial real estate, we expect to see steady growth and recovery all through 2019. Also, investors will be pleased to know that rental rates are on the up and up, with asking rents going from just $23.50 per square foot in 2016 to around $30 in 2018 and predicted to be higher in 2019. Also, high-profile development in Greater Phoenix can only be good news for commercial investors.
Downtown Los Angeles, California
It was once an unsafe part of the city, but since 2015, the city has been taking numerous steps to ensure the safety of its residents. Today, guards are patrolling in cars and on bicycles. Also, with the Olympics coming to the city in 2028, there are many tech companies who are starting to call downtown LA their home. It is also amongst the top cities for commercial real estate because of rising prices in the Bay Area partly fueled by a shortage of space.
The relatively low cost of living, an excellent quality of life and an increasingly educated workforce are all driving prices and demand for commercial real estate up. Now with over two million residents and more flocking to the city each year commercial real estate is already in great demand. Those looking for short returns on their investment should include Austin on their top commercial real estate markets worth considering in 2019.
Dallas and Houston, Texas
Dallas and Houston are seeing a growth in rental property for both C and B class products. That said because it is amongst the most popular States and cities for commercial real estate properties are limited. That’s why if you’re looking to snatch up a bargain make sure that you’re on a local broker’s mailing list. That way you’ll be alerted of all the properties that are on the market. Though expect to pay more in both cities as 2019 matures because this city is sure to grow as one of the top commercial real estate markets in 2019.
Florida’s is seeing lots of mid-sized speculative development since the recession in 2008; we consider this the much-anticipated upward trend. It is also an excellent time for commercial real estate investors. Now because no particular sector is doing better than the other, but if we were to pick one for commercial real estate it will be Jacksonville with explosive growth at the St. Johns Town Center. With a 1.5% steady employment growth, now at 3.6% commercial activities are growing, and so is the demand for commercial properties.
Atlanta is amongst the top commercial real estate markets; it is home to some of the leading business in the country like the headquarters of Amazon, Delta, Coca Cola, etc. Its commercial properties have great potential for both long-term and short-term investment. The reason perhaps is the growing number of jobs and the willingness for people to pay more. Also, the low cost of living continues to attract people from other parts of the country.
Memphis is one of the few cities in Tennessee which continues to grow and offers excellent value making it a force to be reckoned with as one of the top commercial real estate markets. Its commercial properties are some of the best investments in America. However, the key is knowing the market value of a property so that you don’t overpay. So, investors are expected to roll the numbers and make sure that they can still make money even if the market stops growing. Evaluate demand vs. supply, rental trends, mortgage credit, and affordability of a property before buying it.
Out of all the top commercial real estate markets, Chicago ranks no. 1 on many investors’ lists. It was recently rated as being one of the most affordable large cities to live in America. Chicago is also known for having a bustling business center drawing businesses from across the world. That’s why commercial real estate investors who are looking for a lower risk, smarter property investment will do good to invest in Chicago. A diverse range of industries also helps to safeguard investors from wild swings in housing cycles and other economic factors. So, Chicago is indeed worth considering for all types of investors.
The Washington, D.C. Metro Area
We see the DC Metra area growing even more in 2019. It grew tremendously through 2018, with over a million square feet of office space added. Investors should turn their attention to more affordable neighborhoods like Mt. Pleasant, Deanwood, and Petworth. However, there are others, and the prices vary a lot. Not to mention there is a great deal of variety in the type of commercial properties available.
Many arguably rank Seattle as the no. 1 city in their top commercial real estate states and cities. It is one of the fastest growing cities in the world. It is poised to become the next New York mainly because now the land is scarce and the city is unable to keep up with its fast-paced growth. So, builders can only build up which means that land per square foot is a lot more valuable each year. Commercial property continues to be one of the hottest commodities for investors in Seattle and certainly worth a consideration.
2019 is going to be a great year for commercial properties and investors should get in on the action right now. Apart from the cities above, there are many others worth considering. However, if you’re looking for a sure shot return, the above-mentioned commercial real estate markets are solid investments regardless of how you look at it.