Top 10 U.S. Real Estate Markets of the Future

And by Future, I mean next year.

Following up on last week’s Top 10 CRE Trends for 2013, here are the Top 10 U.S. Markets to Watch in  2013. Once again, this ranking comes from data compiled and published by ULI and PriceWaterhouseCoopers.

10. Orange County, CA

Investment rank: 9. Development rank: 19. Homebuilding rank: 9.

9. Dallas/Fort Worth


8. Washington, DC


7. Seattle


6. Boston


5. Houston


4. Austin


3. San Jose


2. New York City


1. San Francisco


Every December, all the real estate magazines, online journals, and blogs commit a healthy amount of space to year-in-review features and predictions for what the coming year will bring to the CRE industry. Well, I’m getting a head start on everyone and publishing my 2013 forecasts in November! Ha!

I’m not sure what I’ll do next month. Maybe start reporting on commercial real estate predictions for 2014…

rice a roni san francisco 176x300 Top 10 U.S. Real Estate Markets of the Future!

If you guessed that San Francisco would be the ULI’s pick for #1 Market to Watch in 2012, the grand prize–a lifetime supply of Rice-a-Roni–goes to you. As one of the core locations for Internet and technology companies–among the United States’ most valuable industries these days–the local economies of San Francisco and nearby San Jose (which appears on this list at a very respectable #3) have  defied the national trends of low employment, sluggish real estate activity, and limited economic growth.

The strong potential we’re seeing in San Francisco’s real estate, whether we’re talking about acquisitions or new development, is simply a product of the area’s thriving technology industry and ongoing attraction of new residents. In terms of pursuing one’s dreams, San Francisco and San Jose have become the new Hollywood.

Of course, commercial real estate is a multifaceted industry, so the cities listed above offer varying potential in different real estate categories (with the exception of San Fran, which ranks #1 for everything). Orange County, for instance, offers far more potential to homebuilders than it does to larger-scale commercial developers. Boston is a better destination for acquisitions–most likely in office, multifamily, and healthcare real estate–than it is for new product.

Keep in mind, of the 51 major markets surveyed for this ranking, these 10 aren’t the only places to find a real estate opportunity, though they do represent that best places to find rent growth, residential demand, and low vacancies. Since numerous major firms have their sights firmly set on these markets, they may also be among the nation’s most competitive and expensive markets. For some, perhaps, less prominent markets may offer greater potential for affordable, income-generating properties.

By Eric Lawthorn

Retrieved 26 November 2012 from http://llenrock.com/blog/top-10-u-s-real-estate-markets-of-the-future/

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