Emerging Markets for Industrial Commercial Real Estate

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The commercial real estate industry is vast. Understanding the market in demand and choosing suitable properties for investment can help bring in good returns. Despite all the challenges and hardships, the market remains to be strong. In 2021, some of the outperforming sectors included office and retail. Also, there was a tremendous demand for self-storage. This was primarily due to the adoption of online shopping by customers who might not have considered purchasing electronics or groceries online. The stats and reports clearly show that online shopping demand will increase in the coming years. Further, the consumers will continue to pressure the National logistic networks for warehouse space and other requirements. Besides this, the growing demand for storage space throughout the country also increases the stress on the global society. All in all, it can be said that it is the requirement for the space and the properties that can be helpful for the business operations that will guarantee the commercial real estate market stays strong. Understanding as cities or areas have good demand is significant to making the most of your investment. So the guide here has mentioned the top places one can consider investing the money. For sure, when you are investing in the best options, the returns will be highly satisfactory.

Best markets for investment

The lack of supply and the strong demand led to a higher return rate for developers and investors who perform the research well. So here is an overview of the top metro areas that one can consider for the funding. The emerging real estate market, for sure, is all prepared to provide a great return on investment.

 

1. Las Vegas

There has been rapid population growth in Las Vegas in recent years. It is the proximity and the location of Vegas which gives the advantage for proper logistic operators. It has about one-quarter of the US population within a day or two delivery time frame. This is quite a great thing. Besides this, it also has regional access to cities from Canada’s Mexican borders and the rail lines that go through the area. Further, McCartan International Airport is known to be the 42nd largest air cargo hub present in North America. It is undoubtedly still a predominant resort-oriented market, but the local economy is quite diversified. It was seen that the GDP growth of the market reached 20% from 2014 to 2019. This helped a variety of incentive programs averaging over $47000 per employee. So it can be said that the vacant spaces and favorable demographics make it an excellent market for investment.

2. Charlotte, North Carolina

The city has strong GDP growth, significant population increase, and access to the second busiest airport. These state highways make it a substantial market for investment incentives for an average of about $29,000 for employees. Not to mention there is excellent availability of land in the surrounding. There is a lower land cost, but more speculative development are now making their way into the counties. The city enjoys a great connection to the other areas with three interstate highways.

3. Nashville, Tennessee

Nashville is also commonly referred to as a Southern boomtown as the GDP has grown too fast, just as the population during the last decade. There are multiple reasons why it is considered a great investment bank. It is located within the proximity of 72 % of the US population, which means that it is pretty easy to operate the ground delivery options. It stays connected with the Interstate Highway system and the airport that serves significant airlines. While looking ahead, there can be strong demand, but supply is still limited due to graphs. This means it will keep the rental rates high and the vacancy rates relatively low. So investing herein will offer significant benefits.

4. Reno, Nevada

The industry has excellent geographic proximity of about 60 million people within a one-day drive, relatively low taxes, a great business environment, and utility rates. Also, the quality of life is excellent. Besides, there is a connection between the strong demand for institutional investors and the taping vacancy rates, which since the last half of 2018 has made it the most competitive market in the country, which is expected to grow significantly in the coming time.

5. Greenville- Spartanburg, South Carolina

This metropolitan region combines economic incentives, business-friendly government, a low cost of living, and a great manufacturing base, leading to growth in the industrial space for the logistic. There are about 33 million people, all residing within 250 miles radius. There is access to ports, rail lines, and interstate highways, which allows for maximum flexibility. Having such a great location and proper communication and transportation is attracting investors to this metropolitan city.

6. Salt Lake City

With the airport opening last year, access to the fastest-growing state has become a lot easier. This has made Salt Lake City a key hub for the entire Mountain West. All of the top airlines provide non-stop services to about a hundred destinations. Besides, there is easy transportation through the land and the water. Even 10 million square feet of industrial space are still present under construction. Further things become better with great demand in the market. Also, the vacancy rate is just 2.1 % which is the lowest that has been recorded here. Finally, the rail route provides direct contact with Canada and Mexico easing transportation. This provides an option for better business.

7. Denver

The city has seen the highest ever GDP in recent time. It can be said that Denver is the fastest-growing economy. It has added about 10% more to the population from 2010 to 2019, making it an excellent market for warehouse investors. Besides this, the job base insulated more from the pandemic-related downturns. The location is just within 250 miles radius, which keeps about 6.5 billion people connected. The demand for expanding occupiers significantly reduces the vacancy rate. It encourages investments from users other than the logistics, which is quite an appreciable sign for the regional economy as it continues to strengthen.

In addition to this, the region also has multiple logistic providers and the third busiest airport. It is expected that the latest expansion will add about 39 more concourse gates which will significantly increase the passenger capacity by 30%. So it can be said that the growing demand and the population here are significant contributing factors to the economy. When things are taken care of, it will surely emerge as one of the best markets in the US.

8. Boston

Undoubtedly it is a growing demand for online shopping. The companies in Boston specializing in life sciences products have made the region the best for industrial space in the West, especially when the vacancy rate is now about 2.5%. There are less than 1 million square feet of area construction. The population increase has a positive but small impact on the GDP growth of the area.

Logistic providers in the area put pressure on finding the last mile warehouse close to sunburns. The great thing is that the region is an important regional hub that connects the airport, rail line, Highway, and other modes that keep all the transportation modes open and well connected throughout.

Boston, in recent times, has seen a tremendous upward shift due to which the investors are considering putting money here. Indeed, the demand and availability of space in the future will bring significant benefits. By putting in the money here, the investors are preparing themselves for the future.

Choosing the right CRE market for investment can be pretty tricky. Before actually confirming a market or a property to invest in, there are different aspects to consider. Having a clear idea about every aspect will bring great results and assurance that the investment won’t go to waste.

Conclusion

Having an idea about the right investment areas and location is extremely important to make the most of it. Having professional support here would make a great difference and assure that you, as an investor, are putting your money in the right place. This becomes extremely important for the new investors as they might not have a good idea about the industry. Private Capital Investors is the company you can trust to get the help. They have experts who will stay by your side and ensure that you have a hassle-free experience of understanding things about the industries. Also, they will guide you as to where your money will bring excellent outcomes. They will support you thoroughly and improve your chances of earning a great return on investment. Make sure you contact them for assistance as for sure the results will be highly satisfactory.

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