Top 5 Emerging Markets for Commercial Properties in 2024

Last updated on October 5th, 2024 at 07:41 am

Commercial properties are one of the most highly valued investments, but to make the most out of it, you have to study the market to ensure you invest in a property in the ideal location with access to various popular places. The search for such places kept getting narrower in scope every year until 2024. 

In 2024, with new areas under development and various regions growing rapidly in business industries, the scope for investors to find an ideal place for commercial property investment has been boosted. The post will act as your guide and show you the current opportunities to invest in top emerging markets for commercial property. But before that, let’s take you through some basics. 

What is Commercial Property? 

Have you ever visited a downtown area filled with huge, tall office buildings, complexes, and industrial hubs on the outskirts? That’s the world of commercial properties. Commercial properties are designed and built with one intention: providing office spaces to firms on rent. 

How does it benefit to know about commercial properties? A firm knowledge of commercial real estate allows you to understand the type of property you want to invest in. Every commercial building is designed to cater to a different industry. For example, office spaces are made for more inside the city business districts.

READ MORE What are Commercial Properties? 

What Defines an Emerging Market in Commercial Properties?

In real estate, an emerging market is a region undergoing development projects and has yet to be captured by several investors. These are regions, areas, and cities that have the potential to grow quickly in the next few years. Here are a few things that will help you determine a growing market: 

• Economic Growth: The most noticeable aspect is the growing economy of the place. Areas with job opportunities, new industries, or increased business activity are the areas that are most likely to experience economic growth. These are also the places where you will see rising demand for commercial spaces like offices, warehouses, and retail stores.
• Population Growth: When people move out to cities searching for job opportunities, they are more likely to settle in a place with quick access to their job location and various transportation modes. The areas that experience heavy migration are an excellent opportunity for commercial real estate to cater to these people. 
• Infrastructure Development: Regions where big projects are planned to be developed are also likely to experince high growth in the future. These include places with highway projects or a new airport to be created; with such high-demand projects, migration is bound to happen.
• Business-Friendly Environment: Many places have specific rules and regulations they set up to attract more businesses. With less strict and more beneficial rules, companies are likely to plan projects in such regions, making them high-demand investment avenues.
• Underserved Real Estate Market: Emerging markets are places that have growth potential, which means fewer competitors in the place. This allows investors to enter the market in the early stages and capitalize on the big profits.

Top Emerging Markets for Commercial Property Investment in 2024

The year 2024 is in full swing, and several cities and areas are emerging as promising opportunities for investors in commercial real estate. The emerging markets show an impressive growth rate due to various factors, including an increase in job opportunities,  population growth, and significant infrastructure developments. Here are the most promising emerging markets you should keep an eye on this year: 

Austin, Texas

Austin, Texas, continues to be a popular hub for commercial real estate, thanks to the tech boom and constant population growth. The arrival of big names like Apple, Google, and Tesla has surged the demand for office space and industrial warehouses. The growing recognition of Austin as a business-friendly center with abundant talent can make it an ideal spot for startups and established firms. It doesn’t matter if it’s offices, retail shops, or industrial buildings; Austin is showing significant opportunities for investors in commercial properties.

Nashville, Tennessee

Nashville is no longer a city just famous for its music; They have quickly shown significant growth in health, technology, and finance. Nashville’s varied economy and expanding population have driven demands for all kinds of commercial real properties. The growing healthcare industry particularly needs office spaces, research facilities, and mixed-use developments. Due to the low cost of taxes and a business-friendly climate, Nashville offers excellent opportunities for investors who want to profit from the growing commercial real estate market.

Raleigh, North Carolina

Raleigh, part of the “Research Triangle,” along with Durham and Chapel Hill, is quickly becoming a major hub for education, tech, and healthcare. The city’s rapidly growing job market has resulted in a huge surge in office spaces and mixed-use developments thanks to tech startups and research institutions. With a higher growth of young professionals and a business-friendly environment, Raleigh offers excellent opportunities for investors to invest in commercial properties. 

Phoenix, Arizona

Phoenix has proved itself to be an excellent market for investors, and it continues to grow as a commercial real estate market because of the low cost of living and growing business-friendly environment. Phoenix has experienced increased demand for industrial buildings, particularly from companies like e-commerce, which require warehouses and distribution spaces. Additionally, the clear and sunny weather, with the sprinkle of low tax rates, keeps attracting new people, ultimately increasing demand for retail and office space.

Charlotte, North Carolina

With various large banks and financial institutions establishing their headquarters, Charlotte is quickly emerging as a major financial hub within the Southeast region. This has resulted in a surge in office buildings and coworking spaces. Furthermore, the population of Charlotte is increasing rapidly, creating more opportunities in the retail and industrial real estate sectors. Due to its central location and growing business scene, Charlotte appeals to commercial real estate investors looking to maximize their growth. 

Frequently Asked Questions (FAQs)

Final Statement

We are through the first half of 2024, and the real estate market, especially commercial real estate, has exciting new investment opportunities. Cities such as Austin, Nashville, Raleigh, Phoenix, and Charlotte have a lot of potential due to the growth of economies, growing populations, and improvements to infrastructure. Of course, there are some risks with this rising market, such as market instability and tighter lending requirements, but you are to experience those risks in every market condition.

But, If you conduct your study, keep up-to-date with the latest market developments, and pick the most suitable properties, you will be able to profit from the growth of these areas. It is now the right opportunity to study these emerging markets and make strategic choices that can lead to the long-term viability of commercial real properties.