A towering force

Hot Austin market rises to No. 1 spot for commercial real estate investment in 2022

Hot Austin market rises to No. 1 for commercial real estate investment

Austin skyline
The sky's the limit when it comes to Austin's commercial real estate market. Photo courtesy of Unsplash/Abodo

If a new ranking is accurate, Austin’s hot market for commercial real estate will continue to sizzle in 2022.

The ranking, from Austin-based CrowdStreet, positions Austin as the country’s No. 1 market for commercial real estate investment this year, up from No. 2 last year. CrowdStreet’s online platform enables private investment in commercial real estate.

“Austin continues to benefit from several years of strong population and job growth, thanks in part to corporate relocation and expansion by some of the nation’s largest companies,” CrowdStreet says.

CrowdStreet ranked the top 20 commercial real estate markets based on nearly 30 factors, including population growth, job growth, unemployment rate, economic diversification, education levels, climate, property prices, and quality of life.

The company places Austin at No. 1 in the build-to-rent category, No. 2 in the office and retail categories, and No. 3 in the multifamily category.

Austin “continues to have many advantages to recommend it, from its relative affordability and vibrant cultural offerings to its enviable status as a relocation city of choice for Silicon Valley businesses and employees,” says CrowdStreet, mentioning the local presence of major companies like Google, Oracle, and Tesla.

Joining Austin in the top 20 are Dallas-Fort Worth (No. 8) and San Antonio (debuting on the annual list at No. 14).

In putting DFW at No. 8, CrowdStreet cites the region’s surge in home prices, apartment rents, and apartment occupancy levels.

“With employment growth and in-migration outpacing the majority of top U.S. markets, Dallas-Fort Worth is full of opportunities for investors in 2022,” CrowdStreet notes.

Meanwhile, 14th-ranked San Antonio’s military presence, population growth, and retail growth helped spur “outsized growth” there in 2021, CrowdStreet points out. 

“We take all property types into account [for our ranking] since the deals on our platform cover private real estate opportunities in all multifamily and commercial real estate sectors. But to make the top 20, a market must consistently rank highly across multiple real estate classes,” Ian Formigle, chief investment officer at CrowdStreet, says in a news release.