Top Cities for Office Property Investment in 2024

Investors in commercial real estate are always on the lookout for the next lucrative opportunity. Despite recent challenges in the office sector, there are still many promising areas for investment, especially in markets with lower-than-average prices. Evaluating current market trends, future growth prospects, and potential returns on investment is crucial for making informed decisions.

This article highlights the cities projected to have the most potential for office property investments in 2024. These predictions are based on data from PwC’s Emerging Trends in Real Estate 2024 and Crexi Insights. Factors considered include population growth, job market expansion, office vacancy rates, and rental prices.

If you’re considering investing in commercial office property, these cities should be on your radar as we move into the new year.

10 Cities to Watch for Office Investment in 2024

For those eyeing commercial investments in office spaces, here are ten cities predicted to experience robust growth, supported by solid economic foundations and attracting local and international investors.

1. San Francisco

San Francisco, despite its high vacancy rate, remains a hotspot for office investments due to its thriving tech sector. Home to giants like Salesforce, Uber, Twitter, and Wells Fargo, as well as AI innovators like OpenAI, the city’s tech footprint is growing. The San Francisco metro area, with a population of around 4.6 million, offers a rich talent pool, making it attractive to investors.

• Inventory: 85,300,726 SF
• Vacancy rate: 30.4%
• Leasing activity: 3,567,758 SF
• Under construction: 51,409 SF

2. Cleveland

Cleveland boasts a diverse economy with strong manufacturing and healthcare sectors and an emerging tech scene. The metro area, with over 2 million residents, has a growing population and rising median household incomes. Cleveland’s office market, particularly its Central Business District (CBD), offers fully furnished office spaces with flexible terms.

• Inventory: 90,616,898 SF
• Vacancy rate: 11.3%
• Leasing activity: 1,077,308 SF
• Under construction: 2,161,454 SF

3. Miami

Miami is becoming a tech hub, attracting talent and venture capital. The metropolitan area, home to about 6.9 million people, has seen significant population growth and rising rental rates. The city’s strategic location and diverse economy make it an appealing market for office investors.

• Inventory: 39,758,579 SF
• Vacancy rate: 15.6%
• Leasing activity: 2,532,826 SF
• Under construction: 1,371,005 SF

4. Houston

Houston, the 4th largest city in the US, is known for its robust energy sector and growing tech industry. The city’s diverse economy supports demand for office space, particularly in innovation districts like The Ion and East End.

• Inventory: 188,445,424 SF
• Vacancy rate: 25.3%
• Leasing activity: 11,774,444 SF
• Under construction: 741,997 SF

5. Denver

Denver’s population has grown significantly, attracting tech companies and displaying strong leasing activity. Submarkets like Cherry Creek and Southeast Suburban show stability with lower vacancy rates.

• Inventory: 121,793,361 SF
• Vacancy rate: 22.9%
• Leasing activity: 5,633,485 SF
• Under construction: 2,040,844 SF

6. Charleston

Charleston, with a pro-business government and a skilled workforce, is experiencing job growth and office use upticks. The city’s diverse economy and strategic location make it an exciting market for office investors.

• Inventory: 21,221,778 SF
• Vacancy rate: 9.9%
• Leasing activity: 532,044 SF
• Under construction: 198,000 SF

7. Raleigh/Durham

The Raleigh-Durham area, part of the Research Triangle, has steady population and economic growth, driven by a flourishing tech sector and strong educational and healthcare industries.

• Inventory: 55,340,708 SF
• Vacancy rate: 21.8%
• Leasing activity: 2,049,439 SF
• Under construction: 1,795,311 SF

8. Manhattan

Manhattan’s office market is rebounding with significant leasing activity, driven by tech companies and various industries. Midtown Manhattan has emerged as a top office market in America.

• Inventory: 416,014,260 SF
• Vacancy rate: 25.6%
• Leasing activity: 17,077,757 SF
• Under construction: 6,176,352 SF

9. Boise

Boise is experiencing impressive growth in population and job market, attracting businesses and driving demand for office space. The city offers a high quality of life and a low cost of doing business.

• Inventory: 16,931,509 SF
• Vacancy rate: 10.9%
• Leasing activity: 584,802 SF
• Under construction: 158,940 SF

10. Austin

Austin, known as Silicon Hills, is a booming hub for technology and innovation. The city’s vibrant tech scene and strong startup ecosystem drive demand for office space.

• Inventory: 63,257,116 SF
• Vacancy rate: 25.4%
• Leasing activity: 2,280,969 SF
• Under construction: 6,008,933 SF

Conclusion

The cities highlighted above present significant opportunities for office property investments in 2024. By staying informed about market trends and leveraging insight from multiple sources, investors can make strategic decisions and capitalize on the potential these markets offer.Explore the full potential of your commercial real estate investments with VidTech’s comprehensive CRE video services, showcasing properties and attracting potential investors. Visit VidTech today to learn more.