Andrew Jubelt

Houston’s energy, education and health industries are expected to drive demand for commercial real estate, although energy has been somewhat slowed by the decline in oil prices. Trade and transportation job growth was strong last year, and it’s expected to continue to support demand for industrial space. The city has very high investment, development, and housing market expectations. It’s strong across the board, with high expectations in the industrial, retail, office, multifamily, and hotel sectors. Houston is attractive to a wide variety of real estate investors, particularly those interested in institutional investing. Real estate capital availability is predicted to be strong, as is the local economy.

2. Austin

Austin has a strong industrial base, and it's a city that enjoys a low cost of doing business. The area is thriving in the office, retail, and single-family housing sectors. It’s a popular destination for millennials and has a diverse, thriving population that attracts potential employees. It also has a relatively low cost of living. Austin is ranked a little lower than others in the top five for investment in industrial, hotels, and the multifamily sector, since it’s not a distribution hub. Locals have confidence in the strength of Austin’s economy, however, and there’s a strong level of market participation by local owners and developers.

3. San Francisco

San Francisco was also a popular commercial real estate hot spot last year, and it’s not expected to slow down in 2015. It has a strong local economy and improved domestic and international travel. San Francisco is particularly strong in hotel investment, as well as in the office and retail markets. The industrial sector is ranked somewhat lower. It also shares something in common with several other cities on the top five list – it’s popular with millennials. Housing – both multifamily and single-family sectors – are expected to be strong. A high level of available capital should keep San Francisco’s investor interest high.

4. Denver

Denver is also popular with millennials and has thriving energy and technology industries. It also has strong retail and office investment. The industrial sector is ranked somewhat lower than others, but has shown improvement. The multifamily sector is ranked somewhat lower amidst concerns of a cooling-off period, but single-family housing is stronger. Public and private investors are strongly attracted to Denver, and its strong local economy and local development community continue to work in its favor.

5. Dallas/Fort Worth

This area benefits from economic diversity that’s likely to sustain a high level of job growth. Dallas/Fort Worth has a low cost of living and doing business, both of which help fuel job growth as well as the single-family housing market. Among the top five cities, it has the highest ranked industrial sector. The multifamily housing and retail sectors are not expected to do quite as well, due to supply concerns. The market is attractive to local and institutional commercial and home developers. It has a strong local economy, available capital, and an active development community.

Andrew Jubelt, a principal at Avant Capital Partners, can advise you on commercial real estate investing and provide you with the funding you need. Contact Andrew Jubelt at ajubelt@avant-capital.com, or call 212-231-9779.