Most people are familiar with the term, ‘location, location, location.’ A new report from a real-estate startup is trying to pinpoint the next big market for real-estate investors.
Cadre, which was founded in 2014 by Ryan Williams in New York City, is a real-estate technology startup that offers investors and individuals access to investing in commercial real estate.
The company identified the ‘most valuable places to invest,’ which it sees as high-growth markets.
Cadre specified top markets in the multifamily, office, and industrial spaces, by analyzing historical returns, growth in two years, and potential for liquidity in each market.
Cadre’s top five markets to invest in multifamily units are:
- Atlanta, Ga.
- Austin, Tex.
- Boston, Mass.
- Charlotte, N.C.
- Dallas, Tex.
Atlanta was at the top of the list given that it’s home to 17 Fortune 500 companies, including Coca-Cola KO, Home Depot HD, UPS UPS, Delta Airlines DAL, and more.
The real-estate startup is bullish on these specific multifamily markets as they’ve had “enduring job and population growth,” and also because apartment rents are more affordably priced than the cost of owning a home.
The costs of homeownership has recently spiked, with mortgage rates exceeding 7%, which adds hundreds of dollars in monthly payments to a household.
As people return to in-person offices, Cadre also sees bright spots for some markets, including Austin, Charlotte, and Nashville, Tenn. Cadre expects growth to be strong in the South, where “office utilization rates remain strong.”
Cadre’s top five real-estate markets for office space investment are:
- Austin, Texas.
- Charlotte, N.C.
- Nashville, Tenn.
- Philadelphia, Pa.
- Phoenix, Ariz.
And top real-estate markets for industrial companies include Baltimore, Md., Boston, and Charlotte, N.C.
Cadre also listed Raleigh, N.C. as one of the top markets that exhibits the most growth potential across the industrial, multifamily, and office space.
“Growth in the capital city of North Carolina has been rapid and astronomical,” the Cadre report said, with population growth and employment remaining strong in the last five years.
Rents grew 10% year-over-year from last June, Cadre said. And office rent in Raleigh is “significantly higher” at 3.49% than other cities on the most valuable places for office is.
Plus, it’s an affordable place to live in, and has “213 sunny days a year,” Cadre noted, which is “above average for the U.S.”
Got thoughts on the housing market? Write to MarketWatch reporter Aarthi Swaminathan at [email protected]
