Global volatility in the financial markets is making the United States an attractive market for commercial real estate. That, along with an American economy showing robust growth through the first six months of 2021, has made this sector attractive to international investors.
Key locations and cities have emerged as favorites for commercial real estate investment opportunities based on a variety of factors. Industry analysts have agreed that the following five cities are among the top of the list:
Atlanta
Rent growth in the Georgia capital is projected to increase by 4% through 2024. Also, Atlanta’s so-called hipsturbia phenomenon has become a significant selling point. That refers to “walkable” mixed-use commercial real estate assets attracting Millennials who are shy of the high rental rates downtown and so are looking to suburbia. Alpharetta and Decatur are both considered extremely attractive locations as of mid-2021.
Austin
Many economists have named the Texas capital as the No. 1 city for job growth in the coming year. The always low-tax environment of the Lone Star State and a surge in new tech jobs bode well for commercial real estate development. For example, Apple is building a $1 billion campus in north Austin. This facility is slated to open in 2022 and will accommodate 5,000 people with a potential to reach 15,000.
Boston
Boston is the lone northern U.S. city entrant among cities named by industry observers in the best commercial real estate climate. That’s despite not having job growth or population expansion going for it. However, The Athens of America is ranked 6th in the nation regarding gross domestic product per capita. Boston is also a city with powerful educational institutions and a surging technology sector.
Charlotte
A small city by comparison to the others in this list, Charlotte is moving forward with a number of robust infrastructure projects, including expansion of the Charlotte Douglas International Airport and significant bus and urban rail transportation projects. Low rents and a strong tech sector here helped drive an amazing 1.5% of the nation’s real estate investment in 2020. That’s remarkable for a city of less than one million people.
San Jose
It’s the only West Coast city on our list, but San Jose is supremely tech-laden, has a high population, and strongly supports the education sector. Like Atlanta, there is a significant hipsturbia vibe happening here with a lot of mixed-use and walkable development.