The real estate industry has suffered a lot over the last few years. Since the COVID times, there have been a lot of changes coming up in the industry to cope with all the damage and losses.
Luckily, as the recovery has become more prominent, certain cities in the US have become an accessible and preferable place for investing.
With proper market research, analysis, and understanding, you will be able to see if this marketplace is suitable for your investment needs and if you will be able to make better returns from it.
Whether a seasoned investor or someone more experienced in the job, getting insights about the top markets to invest in can be extra fruitful. So, make sure you read ahead to get clear insights about the top markets or places to invest in.
Top cities for investing in industrial property in 2024
When choosing an industrial property, a type of commercial property to invest in, there are certain factors investors need to keep in mind when finding the ideal city.
- The anticipated and existing economic expansion of the city.
- The local condition of the market demand for industrial spaces.
- The potential ROI from a property within that market.
Now, based on these factors, here are the top properties you can consider for a good investment return.
- Westchester, NY/Fairfield, CT
Both cities are seeing a great increase in the population growth. This is all happening because of the increasing job market, especially in education, healthcare, and technology. All of these factors, coupled with the strategic proximity to New York City, increase a great demand for industrial spaces here.
Thus, there is a great need for flex space, warehouses, and distribution centers due to the thriving e-commerce and logistics sectors. An investment here will turn out to be quite fruitful.
- Jacksonville, FL
It is not a hidden fact that Jacksonville is amongst the rapidly growing cities. It got a job growth rate of 2.8% in 2023 while the population increase of 11.2% over the last decade has made it more attractive.
The strategic location here makes it a great logistic hub and offers significant expansion in sectors such as manufacturing and eCommerce, fuelling the ongoing demand for industrial real estate.
Just so you know, Total Distribution, which is a 3rd party logistics service provider, Sam’s Club, and industrial equipment supplier Genplant, have all spaces leased here.
Despite a slight increase in the vacancy rate, the fundamentals here remain to be quite strong, with a high asking rent.
- Knoxville, TN
When talking about Knoxville, the demand for industrial space here is all because of its strategic location, which is the intersection of 3 major interstates. Thus, it makes it an attractive hub for distribution and manufacturing.
Further, the city has seen a sturdy population increase and great job growth during the last few years. It has all happened because of the low cost of living, a retiring market, a stable military, and business-friendly policies.
You must know the metro area now is home to various vital distribution and logistics companies, including R&S Logistics and DeRoyal Industries.
Companies like Amazon, DHL, Arrive Logistics, FedEx Logistics, Gap, and others have also brought new jobs to the state. In addition, this also strengthens the demand for logistics industrial space and distribution.
- Long Island, NY
When talking about the industrial market in Long Island, comprises the counties of Queens, Nassau, Suffolk, and Kings (Brooklyn), which are experiencing a huge demand due to various factors.
It’s definitely because the strategic location of Long Island, which is near New York City, has, made easy access to the airport, seaport city, and Interstate highways.
It creates efficient supply chain operations. Herein, the diverse local economy also plays a major role in industries such as food processing, manufacturing, and biotechnology, all require a great amount of industrial space for operation, and all these sectors have been thriving on Long Island.
However, what’s worth noting is that supply here is tight due to less availability of new developments. This scarcity has led to increased competition and higher prices for industrial properties.
But despite this, the outlook remains quite strong and positive for market fundamentals and better growth.
- Miami, FL
With a significant job growth of 69,700 in nonfarm employment and about a 12% increase in the population, Miami’s economy is booming and contributing to the expansion of sectors like extraction and construction. It drives a huge demand for industrial real estate here.
Further, the market’s geographic location also greatly impacts the demand for industrial space. It positions itself as a getaway to Latin America. At the same time, its proximity to significant ports makes it quite an ideal option for ecommerce operations and distribution centres.
In addition to this, the land constraints and the ongoing supply chain challenges have resulted in tight availability and high ends. Port congestion along with West Court has also driven companies here, which further increases the demand.
- Raleigh/Durham, NC
The industrial market in the North Carolina Research Triangle is no doubt experiencing a huge surge and demand primarily because of its strategic location and great infrastructure. The majority of the transportation routes here include interstates 40 and 85.
At the same time, there is also an International Airport, which makes it an attractive hub for distribution and logistics companies. Companies like Amazon already have stabilized large fulfillment centers here.
For instance, Amazon has got 6,20,000 square feet center in Garner, underscoring the trend of eCommerce giants looking for warehouse space that ensures faster delivery times.
Further, it is also quite crucial to know that the research triangle part is one of the largest research parks in the world, which is another factor that contributes to great demand.
Here, hundreds of companies’ RTP houses, including IBM and Cisco Systems, require industrial spaces for research and manufacturing purposes. The region has been seeing consistent population and job growth.
It is the second fastest-growing city in the US. While Durham experienced a population increase of 20% during the same.
Overall, the diverse local economy incorporates and helps various sectors like biotechnology, information technology, and pharmaceuticals. It also drives demand for industrial space in the region.
- Baltimore, MD
Baltimore has quite a strong industrial market that is located in proximity to key transportation nodes. The International Thurgood Marshall Airport is one of the busiest airports in the US. It provides seamless air cargo services throughout the year.
At the same time, the port of Baltimore is known to be the most versatile and deepest port in the nation. It handles a great amount of cargo every year.
In simple words, it is quite evident that the market is home to a diverse range of manufacturing and logistics businesses.
ECommerce giants such as Amazon already have distribution centers here, while the global sports gear manufacturer Under Armour has a headquarters in Baltimore that boosts the demand for industrial spaces.
In addition to this, firms like Emergent BioSolutions, the biotech sector of Baltimore, add to the demand for industrial spaces.
But there’s more to it. The job growth and population have also been a great driving factor. The Greater Baltimore area has seen consistent population growth, with an estimated population of about 2.8 million in 2023.
Further, the region also boasts a strong job market, especially when it comes to education, healthcare, and government sector. This all indirectly contributes to a great demand in the industrial market.
Is an investment in 2024, right?
When it comes to CRE investment, one can never be too sure. After all, past experiences have not been too good. However, luckily, things are changing now, and there are a lot of success principles every new CRE investor should know.
With the availability of multiple cities that are thriving and offering job opportunities, it is quite evident that an investment in industrial space will turn out to be quite fruitful in 2024.
You can do thorough research based on your industry type to find the best city for investment in the coming year. Make sure you take your time to understand it all right in advance.
After all, proper analysis and research are the keys to knowing if a specific city will be the best for your business purpose.
Keep in mind you can never be too sure or safe in CRE. So it’s best to take a good amount of time and put on all your focus before you invest anywhere.
When hoping to invest in an industrial property, you will require a significant amount of financing.
If you need support with it, you can consider relying on Private Capital Investors. They have the best professionals who will help you acquire the financing as soon as possible.
Irrespective of your requirement the experts will be there to help you understand the best available choices and get the deal closed at a good rate. Just get in touch with their experts, and you will have all the help you need.
They will guide you in the right direction to guarantee your investment is done in the best place possible, guaranteeing a better return in the future.