As we head into the new year, it’s helpful to know which commercial real estate markets are expected to see increased activity in 2017. Nailing down which areas are set to perform well is not an exact science, but Zillow, Realtor.com and REFM have all released lists highlighting potentially strong markets. These are five cities found in at least two of those lists, with some context behind why experts expect them to succeed.
The largest city in the Pacific Northwest ranks #2 on Zillow’s list of growing 2017 markets. The company points to Seattle’s property appreciation growth (5.6%) and relatively low unemployment rate (4.4%). Add on the city’s wide variety of industries and growing tech sector and you can see why the future looks bright for investors there.
Orlando has long been a hot-spot for overseas investors to sink money into their commercial real estate portfolio. Thanks to the growing need for warehouses in the e-commerce market, industrial properties are expected to be in high demand in the coming year. In 2016, rent prices went up in every sector.
The capital of Arizona boasts growing employment numbers and a shrinking vacancy rate. Together with positive rent growth, these factors have many investors giddy about the city’s commercial real estate potential in 2017. An Urban Land Institute report suggests multifamily units are a forward thinking investment.
Salt Lake City
The City of Saints experienced historic commercial real estate development in 2016. Many brokers found it hard to believe how extraordinary the market was doing. Zillow expects the trend to continue with property values predicted to grow by 4.3% and unemployment levels at a meager 2.8%.
The same Urban Land Institute report points to Austin as another hot market. From their findings, Austin withstood the financial crisis of ‘08 fairly well, and now benefits from a diverse local economy. The population is educated and growing as millennials travel south to a ‘hip’ city.