Most people are familiar with the term ‘location, location, location’. A new report from a real estate startup tries to pinpoint the next big market for real estate investors.
Founded in 2014 by Ryan Williams in New York City, Cadre is a real estate technology startup that provides investors and individuals with access to commercial real estate investment.
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, analyzing historical returns, two-year growth and potential for liquidity in each market.
Cadre’s top five markets for investing in multi-family housing are:
Atlanta, Ga. Austin, Tex. Boston, Mass. Charlotte, NC Dallas, Tex.
Atlanta topped the list as it is 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 particular multifamily markets because they have had “continued job and population growth,” and also because apartment rents are more affordable than the cost of owning a home.
The cost of homeownership has risen recently, with mortgage rates over 7% adding hundreds of dollars in monthly payments to a household.
As people return to personal offices, Cadre also sees bright spots for some markets, including Austin, Charlotte and Nashville, Tennessee. Cadre expects growth to be strong in the south, where ‘office occupancy rates remain strong’.
Cadre’s top five real estate markets for office space investment are:
Austin, Texas. Charlotte, NC Nashville, Tenn. Philadelphia, Dad. Phoenix, Ariz.
And the major real estate markets for industrial companies are Baltimore, Md., Boston and Charlotte, NC
Cadre also named Raleigh, NC as one of the top markets with the most growth potential in industrial, multifamily, and office space.
“Growth in the capital city of North Carolina has been rapid and astronomical,” according to the Cadre report, with population growth and employment remaining strong over the past five years.
Rents were up 10% year on year from June last year, Cadre said. And office rent in Raleigh is “significantly higher” at 3.49% than in other cities in the most valuable places for office.
Plus, it’s an affordable place to live and has “213 sunny days a year,” Cadre noted, which is “above average for the US.”
Do you have ideas about the housing market? Write to MarketWatch reporter Aarthi Swaminathan at [email protected]