Commercial real estate agents always look for the best environments to grow and expand their businesses. Additionally, with decreased demand in office spaces due to the emergence of remote work pre-pandemic, CRE professionals have had to rethink their primary areas of operations.
Some commercial markets are seeing growth in industrial sectors, while others perform better in retail. Whatever your niche, seeking new opportunities is an ongoing exercise to ensure business longevity.
Whether you’re looking to move cities within your state, move to another state, or seek opportunities in an entirely new country, our comprehensive article offers insights on the best places to be a commercial real estate agent.
But first, what are the markers of a commercial real estate market that offers growth and sustainability?
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Market Demand For Your Niche
As a commercial real estate agent, it is crucial to understand the market of your interest. Industrial hubs are great environments for commercial agents, but competition tends to be stiffer in these areas.
Assessing a market before setting up your business aims to identify a gap and determine how best to fill it.
Growth Potential
Every business’s goal is to grow in revenues and influence. Markets with growth potential offer commercial real estate businesses the opportunity to expand and service even larger areas.
Some markers of the best places for a commercial real estate agent include upcoming developments, more businesses, or government initiatives that will stimulate growth.
Competition
Some markets are highly saturated with well-established local players. Penetrating these markets can be difficult, especially if you are not part of a big brand.
Assessing competition ensures that your business has a verifiable fighting chance, and you are prepared to counter similar offerings with a unique proposition for your potential clients.
Legal and Regulatory Implications
Some states have laws and regulations that may not be very hospitable to new businesses, while others have regulations to help agents transition more easily.
This includes progressive initiatives such as real estate reciprocity and portability from state to state. These initiatives mean agents don’t have to start from scratch when moving states and can help save time and resources.
Cost of Living
Some cities are expensive to live in. When calculating the potential revenue you will make as a real estate agent in these cities, keeping the cost of living in mind is important.
For instance, the agent making X revenue in Philadelphia cannot compare to another agent making the same revenue in New York. New York has a higher cost of living, so real estate agents have to make much more to sustain their lifestyle.
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6 Best States For A Commercial Real Estate Agent
The US real estate is vast and varied. As such, some states offer better opportunities for commercial real estate agents than others. Here are 6 of the best states for commercial real estate agents;
Texas
Texas boasts booming cities like Dallas, Houston, and Austin. These cities' rapid growth has catalysed a commercial real estate boom to address increased demand.
The state has experienced an upward trend in demand for commercial space, especially retail and office spaces. In response, investors have flocked to these cities to increase the supply of these spaces.
As a result, industry professionals cite Texas as one of the best places for commercial real estate agents.
California
California is an economic powerhouse with a diverse commercial real estate landscape. The state is an undeniable hub of commercial activity with major cities like Los Angeles, San Fransico, and San Diego.
California’s commercial needs are as diverse as its cities. From the tech hub in Silicon Valley to the entertainment sectors in Hollywood, the state offers a wide range of commercial opportunities.
Additionally, the growth rate is robust and stable, ensuring growth and expansion opportunities for real estate commercial real estate agents.
South Carolina
South Carolina’s commercial real estate market is seeing an ongoing decline in vacancy rates as demand for retail and office space continues to grow. Major corporations such as Boeing and Volvo also invest in the state.
The outlook is promising, with growth expected to keep accelerating. These developments have firmly placed South Carolina as a robust market for commercial real estate agents seeking growth opportunities.
Florida
Major cities in Florida, like Miami and Orlando, are seeing significant population growth, driving the demand for real estate.
Additionally, Florida is a central tourism hub, attracting investors seeking opportunities in the hospitality and retail commercial sectors. Florida’s tax climate has also been favorable to CRE professionals, attracting more and more investors, agents, and businesses in this particular industry.
Georgia
Georgia is Atlanta’s commercial hub, and its outlook promises a continuing upward trajectory for the industrial and retail sectors. Industry reports show an increased investment in warehousing and distribution centres owing to the state’s strategic location and transportation infrastructure.
Additionally, Georgia is a relatively affordable state. As such, real estate agents would find this a great state with growth opportunities as we have an affordable cost of living.
Best Cities For A Commercial Real Estate Agent
Some cities offer better opportunities in commercial real estate. Here are five of the best cities to work in commercial real estate:
Austin
Austin has an impressive track record of robust commercial sector growth, driven by a spurt in technology hubs, new businesses investing in the city, and a vibrant startup ecosystem.
The city’s reputation as Silicon Hills has attracted commercial investors and other professionals to fill the ongoing demand for office and retail spaces.
Atlanta
Atlanta, Georgia, is a major business hub with thriving finance, technology, and logistics businesses. These sectors ensure a steady demand for varying commercial real estate.
Additionally, Atlanta has one of the best transportation infrastructures in the country, enhancing its appeal for logistics and industrial real estate.
Dallas
Dallas is a commercial heartthrob in the state of Texas. The city has a diverse commercial scene, from technology and finance to real estate. The city also offers a friendly environment to businesses, attracting investors from all over the world.
This surge of business drives high demand for various commercial spaces, including office buildings, retail centers, and industrial properties.
Oklahoma
Oklahoma City has a diversified commercial sector, including government, energy, and healthcare industries. This diversity, coupled with the city’s living costs and business operations affordability, has propelled it to become a major hub for commercial real estate professionals.
Oklahoma is additionally experiencing steady economic growth and urban development. There is an increased interest in commercial projects and redevelopment opportunities, and real estate agents in the commercial sector can find immense growth and expansion opportunities in the city.
Phoenix
Phoenix, Arizona, is one of the fastest-growing cities in the US, mostly due to population growth and economic expansion. Rapid development has occurred in commercial and industrial hubs, including residential, office, and retail spaces.
Additionally, the city's diverse economy includes tourism, healthcare, and technology, making it one of the best areas for commercial real estate.
Commercial real estate agents also cite the city’s business-friendly environment as one of the reasons Phoenix is one of the best cities to live and work in.
Best Places Outside Of US To Be A Commercial Real Estate Agent
The commercial real estate sector is thriving in other areas of the world. Opportunities are unlimited, and agents can seek greener pastures outside the country. These are some of the best places outside of the US to be a commercial real estate agent:
Toronto, Canada
Toronto's stable economy is owing to its status as the financial capital of Canada. This stability enhances the ongoing demand for commercial spaces, including retail and office spaces.
Additionally, the city benefits from domestic and international investors, creating numerous opportunities for commercial real estate agents.
Sectors with growth opportunities include:
- Office, especially modern spaces and co-working environments.
- Retail spaces, including high street retail and shopping malls.
- Industrial sectors such as warehouses and distribution centres.
London, UK
London is a global financial hub with a significant concentration of investment firms, banks, and international corporations. Moreover, the city boasts global connections and economic stability.
As such, the city offers immense opportunities for commercial real estate professionals worldwide. Opportunities for commercial real estate agents lie in the office sectors, retail, and speciality properties such as mixed-use developments.
Dubai, UAE
Dubai is a major development hub in the United Arab Emirates. The city has a diverse mix of finance, tourism, and trade businesses. As a global business hub with a diversified economy, Dubai’s demand for commercial real estate is robust and ever-increasing.
Commercial real estate agents can join the industry through various channels to service clients in sectors such as office, retail, and industrial spaces.
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