The real estate industry has been making headlines across the country for the last year, as media outlets scream out news of low housing inventory and increasing property values. While residential real estate is enjoying another moment again, it's also critical to take note of the strength of the commercial real estate market. Nationwide, commercial real estate is increasing in value and is in high demand. As communities attract a new and diverse pool of residents, commercial development is necessary to maintain that growth.
Investors who want to get into the commercial real estate market should consider these top markets across the country:
San Francisco, California
Often referred to as a the largest tech hub in the country, San Francisco has been enjoying an economic boom that has impacted both the commercial and residential real estate in the area. While retail space is a valuable investment in this community, it's the office space that is really in high demand. Not only are large companies choosing the city by the bay for their headquarters, but start-ups and small businesses like to be located here as well. This is driving up the demand as well as the value of commercial office buildings.
Miami has long been a real estate hot bed, but now is definitely the right time to get into the commercial real estate business in this south Florida city. Both retail and office space values are on the rise, as residential development soars along with the local economy. Retail commercial properties, in particular, appear to be experiencing a boom in Miami.
While both of the Twin Cities are experiencing strong commercial real estate markets, it's Minneapolis that is currently the standout. Within the city, there are several different commercial sectors that are booming in specific regions of the metropolitan area, according to Twin Cities Business. For example, the suburb of Eagan is home to a variety of new retail developments that are drawing visitors from outside the area. Industrial development is thriving in Shakopee-especially since noteworthy tech giants Shutterfly and Amazon decided to call this area home.
This provides commercial real estate investors with an opportunity to select a specific investment in an area in which it will be successful. This unique option to identify a niche commercial sector is one of the reasons why Minneapolis-area counties, such as Crow Wing, are among the top commercial real estate markets in the country.
Real estate insiders have been hailing Austin as one of the best places to move for the last year, citing its strong economy, its new residential development and its appeal to the young Millennial generation. Naturally, these factors contributed to a boom in commercial real estate. Austin is experiencing unprecedented growth, and now is the right time to invest in development in this area. Unemployment in Austin is extremely low, which means that office space as well as retail developments will be in high demand amongst residents in this area.
Boston made the list as one of the top U.S. commercial real estate markets because of the opportunity to develop and invest in valuable office space. Corporations from around the world are settling in Boston, and office space is at a premium. Commercial investors who want to focus on this type of property would be wise to consider this East Coast powerhouse.
Charleston, South Carolina
Both prices and values for retail real estate as well as office buildings are on the rise in Charleston. While this market is not experiencing the same type of magnificent booms as other towns like San Francisco and Boston, the commercial real estate market in Charleston is growing at a slow and steady rate. For investors who are looking for a solid, long-term investment, Charleston is poised to be an up-and-coming market in the years to come.
New York City, New York
The Big Apple has always been an ideal option for real estate investors, but New York City is enjoying a particularly strong market right now. Asking prices for office space is holding steady, which is providing investors with a good time to buy before the prices surely increase. In addition, demand for retail development is on the rise throughout the various neighborhoods in the city. Those who are interested in a wide range of commercial investment opportunities will find many options here.
Whether your local market is experiencing a boom or you are willing to travel to make the right commercial investment, it's necessary to know which markets are hot and which are not. From Minneapolis and St. Paul in the north to Miami in the south, there's plenty of opportunities to purchase office and retail space as an investment. Contact a qualified commercial real estate agent today for more information on the best investment options.