The 10 Best Real Estate Markets for Investors in 2024 (& What to Buy)

In today's episode we dive into the top 10 real estate markets for 2024 according to the Urban Land Institute's emerging trends report, highlighting key investment opportunities like industrial facilities, multifamily housing, and creative office spaces in cities like Seattle, Raleigh-Durham, Austin, Phoenix, and Nashville; and more.

Get commercial real estate coaching, courses, and community to jumpstart your investment journey over at CRE Launch Pro: www.crelaunchpro.com

Key Takeaways:

• The top 10 real estate markets for 2024 based on the Urban Land Institute's emerging trends report, with a focus on investment opportunities in each market.

• Seattle, Raleigh-Durham, San Antonio, Boston, Austin, Atlanta, Dallas-Fort Worth, Phoenix, and Nashville are highlighted as top markets.

• The best investment opportunities highlighted include industrial facilities, multifamily housing, creative office spaces, life sciences lab spaces, and mixed-use developments.

About Your Host:

Tyler Cauble, Founder & President of The Cauble Group, is a commercial real estate broker and investor based in East Nashville. He’s the best selling author of Open for Business: The Insider’s Guide to Leasing Commercial Real Estate and has focused his career on serving commercial real estate investors.

Episode Transcript:

0:00

Today we're counting down the best real estate markets in 2024. Based on insights from the annual urban land Institute's emerging trends report, these metro areas showed the strongest prospects for real estate investment in 2024. And I'm going to break down the opportunities in each market so you know exactly what to buy. This Pacific Northwest Metro is back on the list at number 10. For overall real estate prospects. Seattle leverages a highly educated workforce and thriving technology sector to drive its economic growth. major employers like Amazon and Microsoft continue expanding and the region attracts educated Millennials drawn to its natural amenities and vibrant urban scene Seattle endured remote work departures but maintain solid office and multifamily fundamentals investors should target innovative new developments capitalizing on the area's talents Seattle's Best Bets tech office space target innovative new or renovated offices near Amazon and Microsoft campuses. To attract tech firms focus on creative layouts and top of the market amenities multifamily housing Seattle struggles to keep up with population growth due to undersupplied housing focus on apartments near transit hubs and tech campuses as well as mixed use projects industrial facilities strong logistics demand but constraints on the available land limit supply in the market work to infill warehouse sites that can meet growing last mile delivery needs Life Sciences global health companies and University Medical Research drive demand for additional lab space new development along the lake union waterfront remains very desirable Raleigh Durham this fast growing North Carolina Metro has fallen to number nine in the emerging trends survey from a number one position in 2021. Affordable housing university presidents and technology and life sciences growth make Raleigh Durham a magnet for new residents the area saw rapid absorption of new apartments and significant office leasing in 2022. Investors should focus on multifamily housing and creative office or flex space near the region's talent centers. Raleigh Durham is Best Bets multifamily housing. Absorption of new apartments has been rapid target development or acquisitions in a fluent Northwest Raleigh and around Research Triangle Park flex office space. Look for creative spaces near top talent pools like Duke University and Centennial Campus co working in space for startups is also a big draw mixed use projects developments that blend retail office and multifamily and walkable nodes are highly attractive focus on areas like North Hills and downtown Durham industrial facilities ecommerce and distribution firms drive demand for warehouses given Raleigh's location your course San Antonio this South Texas hub lands at number eight for markets to watch and 2024 San Antonio offers business friendly policies no state income tax and low costs that attract corporate relocations. Toyota recently announced a $400 million investment into their manufacturing plant there San Antonio has also been ranked as the most affordable major metro city to live in Texas investors should target industrial facilities multifamily housing, and mixed use developments in San Antonio's Best Bets industrial facilities, Toyota, Amazon, FedEx and others are expanding here demanding new warehouses and distribution centers multifamily housing ongoing in migration to the San Antonio area continues to fuel apartment demand focus on suburban communities to align with job growth mixed use san antonio strong retail sector presents chances to develop vibrant live workplace communities, especially along the I 10 Corridor creative office. low costs and tech growth allow for office space catering to emerging firms, especially in the downtown area. Boston despite high costs Boston ranks at number seven based on its world class talent pool the city leverages a weak universities to lead in fields like biotech, robotics and computing. The remote work dented the markets office demand Boston's educated workforce and innovation ecosystem remain a worrying for Office users investors should focus on niche lab space and your top universities and hospitals Boston's Best Bets lab space there is major demand from pharma and biotech research near elite universities and hospitals. New lab towers are commanding very high rent rates multifamily housing, apartment conversions are a strong possibility here mixed use projects blending residential lab and creative office space is very desirable, especially in your transit nodes. Boutique office land constraints limit large block development but small funky spaces appeal to creative startup firms San Diego this sunny Metro jumps to number six in the emerging trends outlook San Diego provides a high quality of life and depth of talent that continues driving corporate expansions, especially in the tech industry, Raytheon blue Nalu and Apple recently announced major local projects San Diego should sustain apartment industrial and life sciences demand for Office growth is likely to be constrained San Diego's Best Bets Life Sciences. lab space is in major demand especially in the Torrey Pines area they can see is near zero multifamily strong demographics and unaffordable homes sustain apartment demand. Target North County coastal suburbs, industrial logistics and warehousing space needed for Mexico trade flows Otay Mesa border facilities see very low vacancy rates creative office, there is a need for differentiated space catering to tech firms. Despite the overall office market glut focus on amenity rich, flexible designs, Austin Austin slips in number five after two consecutive years and number four, the Texas Capitol remains a top destination but is starting to show some growing pains home prices have jumped over 40% In recent years, and traffic congestion is mounting a southern tech hub Austin boasts vibrant job creation and migration, especially from California investors should target industrial facilities, new mixed use communities and creative offices Austin's Best Bets industrial rapid population growth spurts demand for distribution space focus on areas near the airport and the I 35 corridor. mixed use projects blending residential creative office and retail draws residents and companies to vibrant live work play notes multifamily housing, apartment demand remains white hot despite the surge in overall supply target neighborhoods near employers with walkable amenities creative office, with high overall vacancy differentiated space is needed to attract companies and talent in the tech field. Atlanta, this perennial southern favorite ranks number for falling from number three and 2023 Atlanta wars residents and corporations with its business friendly climate, airport hub and relatively affordable housing market. financial firms like BankUnited continue to relocate or open their headquarters here apartment and industrial space remain hot commodities investors should focus on distribution facilities on major highways and popular in town multifamily

neighborhoods in Atlanta's Best Bets industrial facilities. There's major demand for E commerce and logistics space given Atlanta's airport highway infrastructure, multifamily housing ongoing corporate relocations provide solid apartment fundamentals focus on in town neighborhoods near nightlife office space creative designs could help backfill space left by pandemic departures medical and tech offices are also in high demand. mixed use projects blend residential retail and office around pedestrian friendly nodes like Atlantic Station, Dallas Fort Worth. DFW comes in at number three dropping from number two and 2023. The Metro is a corporate magnet thanks to low taxes, minimal regulations and its central location Toyota peloton and others recently announced expansions here the DFW area is expected to reach over eight and a half million residents by 2028. Investors should target industrial space apartments and mixed use projects in a fluent suburban nodes like Frisco or Plano DFW is best bets. industrial space Dallas offers a relatively high availability of land for expansion and major demand exists for warehouses and distribution centers due to its centralized location suburban multifamily, attractive neighborhoods like Frisco Plano and McKinney offer strong apartment development potential mixed use projects developments blending residential retail and creative office space have thrived in areas like legacy West affordable housing as prices soar opportunities exist to develop moderately priced housing and apartments. Phoenix, the Arizona capitol jumps seven spots to number two in the emerging trends outlook Phoenix boasts rapid population and job gains as migration accelerates Phoenix's office vacancy rate remains elevated but other sectors show robust demand. Investors should focus on industrial facilities and suburban multifamily housing Phoenix is best bets. Industrial facilities, major demand exists for warehousing and distribution space given Phoenix's rapid growth multifamily housing, apartment demand remains robust, especially in a fluid neighborhood nodes like Scottsdale and Tempe office space with high overall vacancy opportunities exist to develop creative new medical and tech offices. mixed use projects winning residential, retail and creative office uses holds major appeal, especially in emerging neighborhoods. And coming in at number one, the home of yours truly, Nashville Music City tops the list again for the third year in a row as Nashville retains its broad industry appeal. Corporate relocations continue from auto healthcare and tech firms plus Nashville offers entertainment amenities and affordable housing relative to other growing hubs. Investors should target creative office space mixed use developments and multifamily projects despite mounting competition Nashville's Best Bets creative office space corporate expansions provide the chance for differentiated office buildings catering to specific industries such as medical mixed use projects, developments blending residential entertainment retail and creative office space still hold major appeal multifamily housing ongoing population growth sustains apartment demand despite the mounting supply and affordable housing as prices rapidly appreciate opportunities exist in building moderately priced apartments and homes. And now that you know know what the top commercial real estate markets are going to be in 2024 Check out this video here on the future of office space