Top U.S. Commercial Real Estate Markets
Houston- based commercial real estate firm Situs RERC ranked 48 U.S. metro areas as to which has the most promising commercial real estate market for investments.
The top six areas among the 48 were Dallas, Orlando, Raleigh, San Antonio, Austin and Phoenix.
According to bizjournals.com, Brian Velky, managing director of fiduciary and valuation services for Situs, said that "Phoenix has better price values than more expensive 'primary' U.S. markets such as Los Angeles, New York, San Francisco and Boston." He also said that "Phoenix has good growth projects for population and job gains. Phoenix has a strong outlook and relatively reasonable prices."
Velky also remarked that the uncertainty whether new construction will attract new tenants and users from other states or local companies relocating within Maripoca County, will pose as the one challenge that the Valley's real estate have to face.
"Three of the top five markets for real estate are in Texas." according Situs.
Austin was the top market for real estate growth and investment and price increases in 'primary' U.S metro areas push investors and developers to look for alternatives and second- tier markets.
According to the report, Los Angeles was 43rd on the list while Las Vegas was on 11th. Sadly, Toledo and Cleveland ranked last. Some submarkets in L.A. such as Santa Monica offers great deal for real estate investors but due to high prices and under- performing areas, the submarkets were placed low in the rankings.
Investing in real estate give better return of investments for the investors and developers. According to money.usnews.com, in some cases, investing to real estate is better for various of reasons. One of which is, real estate property can be a hedge against inflation. When inflation occurs, rental rates and home prices rises while your mortgage payments will not increase. This investment can benefit the investors over time. Since it's one of the most lucrative market to invest, it's important for developers and investors to find the most promising commercial real estate market.