Top U.S. Cities for Commercial Development Projects

The U.S. development asset class in commercial real estate (CRE) is thriving as cities across the nation experience growth, economic expansion, and increasing demand for new spaces. Developers, investors, and brokers are constantly on the lookout for markets with strong potential for new projects, whether it’s office buildings, industrial warehouses, retail spaces, or multifamily units.

To help guide those interested in the development asset class, we’ve compiled a list of the top cities for development in the U.S. These cities offer a combination of favorable economic conditions, population growth, and demand for new infrastructure that make them prime locations for commercial real estate development.

1. Austin, Texas

Austin has become one of the hottest cities for development in recent years, thanks to its booming tech industry, friendly business climate, and rapid population growth. Often dubbed the “Silicon Hills,” Austin attracts major companies like Google, Apple, and Tesla, fueling demand for office spaces, housing, and commercial developments.

• Key Factors:
  • Tech industry expansion
  • Affordable land compared to other major cities
  • A large influx of young professionals

Austin’s population growth has also driven demand for multifamily developments, making it one of the top markets for residential construction. Developers are working to keep up with the need for new apartments, office spaces, and mixed-use developments to cater to the city’s growing workforce.

2. Nashville, Tennessee

Nashville is another rising star in the CRE development sector. Known for its vibrant culture and music scene, Nashville has also emerged as a major hub for healthcare, education, and entertainment industries. This combination of economic drivers makes it a hotspot for development across various sectors.

• Key Factors:
  • Rapid population growth (over 20% in the last decade)
  • Thriving healthcare industry
  • Strong demand for mixed-use developments

Developers in Nashville are focusing on multifamily housing, retail, and office projects to accommodate the city’s expanding population. The influx of professionals and tourists has also sparked demand for new hospitality developments, further boosting the city’s real estate market.

3. Phoenix, Arizona

Phoenix has seen explosive growth, making it a key city for development across several asset classes. The city’s warm climate, affordable cost of living, and increasing job opportunities in sectors like tech and healthcare are driving population growth, leading to high demand for commercial real estate.

• Key Factors:
  • Significant population growth
  • Affordable land and development costs
  • Expansion of the tech and healthcare industries

Phoenix is particularly strong in the industrial development sector. As e-commerce continues to grow, the need for industrial warehouses and distribution centers in the region is skyrocketing. Developers are also working to meet the demand for new residential spaces as the city’s population continues to rise.

4. Raleigh-Durham, North Carolina

Raleigh-Durham, often referred to as the “Research Triangle,” is known for its universities and research institutions, making it a hotspot for tech and life sciences development. The area offers a well-educated workforce and affordable development opportunities, which is driving growth in both the commercial and residential sectors.

• Key Factors:
  • High demand for office space from tech and life sciences companies
  • A strong education system with universities like Duke and UNC nearby
  • Steady population growth fueled by job opportunities

Developers in Raleigh-Durham are focusing on creating office parks, mixed-use developments, and multifamily properties to support the influx of professionals and businesses moving to the region. The growth of life sciences companies, in particular, is leading to new development opportunities in laboratory and research facilities.

5. Dallas-Fort Worth, Texas

Dallas-Fort Worth (DFW) is one of the fastest-growing metropolitan areas in the U.S. and a prime location for commercial real estate development. The region has become a major hub for logistics, finance, and tech industries, driving demand for a wide range of asset classes.

• Key Factors:
  • Central U.S. location with easy access to major markets
  • Expanding logistics and distribution networks
  • Strong demand for industrial, office, and multifamily developments

The DFW area is seeing a surge in industrial developments as companies seek to capitalize on the city’s central location for distribution and supply chain operations. Additionally, the population growth in the region is fueling demand for new multifamily housing and office developments.

6. Miami, Florida

Miami is not just a tourist hotspot; it’s also a major player in the CRE development sector. With a growing financial sector, international business ties, and a large influx of new residents, Miami offers ample opportunities for developers.

• Key Factors:
  • Thriving international trade and finance sectors
  • High demand for multifamily and luxury residential developments
  • Increasing interest in mixed-use and hospitality projects

Miami’s waterfront properties and urban areas are seeing a wave of new luxury developments, from high-end condos to mixed-use towers. The city’s global appeal continues to attract both domestic and international investors, fueling the need for more office, retail, and hospitality spaces.

7. Charlotte, North Carolina

Charlotte has transformed into a financial and tech hub, attracting both businesses and new residents at a rapid pace. The city is home to several major banking institutions, including Bank of America, making it a center for financial services and real estate development.

• Key Factors:
  • Expanding financial services industry
  • Affordable cost of living compared to other major cities
  • Strong demand for office, residential, and industrial developments

Developers in Charlotte are focusing on building new office towers and multifamily properties to accommodate the city’s growing workforce. Industrial developments are also on the rise, driven by the need for more warehousing and logistics facilities in the region.

8. Salt Lake City, Utah

Salt Lake City is quickly gaining a reputation as a major growth market in the CRE development sector. The city’s tech industry is booming, and its strong job market is drawing in new residents, which has led to a surge in demand for new commercial and residential properties.

• Key Factors:
  • Fast-growing tech sector
  • Pro-business environment with low taxes
  • High demand for multifamily and industrial developments

Salt Lake City is particularly attractive for developers working on industrial and multifamily projects. The city’s central location makes it ideal for distribution centers, while its population growth is driving the need for new apartments and mixed-use developments.

Conclusion

The development asset class in commercial real estate offers some of the most exciting opportunities in today’s market. Cities like Austin, Phoenix, and Nashville are leading the charge, thanks to their economic growth, population expansion, and favorable conditions for development. Each of these cities presents unique opportunities for brokers, developers, and investors to capitalize on CRE projects.

VidTech’s advanced video and 3D modeling services can enhance development projects by offering virtual site tours, data overlays, and comprehensive visualizations. These tools streamline communication, accelerate decision-making, and ultimately help developers and stakeholders achieve success in these top markets.

Understanding the potential of each city and leveraging the right technology will allow developers to maximize their investment and meet the growing demand for new infrastructure in these booming areas.