Investment Goldmines: 7 Essential Factors to Identify Best Cities for Real Estate Investments

Investing in commercial real estate can be a lucrative venture, but it requires careful consideration and research to ensure a successful return on investment. One factor that should not be overlooked when determining where to invest is the location, specifically the city or MSA (Metropolitan Statistical Area). Choosing the right city or MSA can greatly impact your investment’s potential for success.

So what are the top 7 key factors to consider when looking for the best cities or MSAs to invest in today? Get ready to consider these factors and how they can influence your investment decision. Stick around to the end to find out the top 10 cities to invest in today!

1. No or low individual income state taxes

One of the first things to look at when considering a city or MSA for real estate investment is its tax policies. States that have no or low individual income taxes can be appealing for investors as it means more money in their pockets. This is especially beneficial for those looking to invest in rental properties, as higher taxes can eat into your profits.

A few states in the U.S. don’t levy a state income tax, making them potentially attractive for real estate investors. These states include Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Additionally, two states – Tennessee and New Hampshire – only apply income tax to interest and dividend income. However, always remember that while these states may not tax personal income, they may make up for it in other areas, such as property or sales tax, so it’s important to conduct a comprehensive evaluation before making your investment decision.

Caution: Depending on the state in which you live, similar to California, you MAY still have to pay state income taxes even though your property is situated in a “no state income tax state.” California’s “clawback tax” provisions are an example. Be sure to check with your tax advisor in the state in which you’re living.

2. Business friendly environment

A city or MSA with a business-friendly environment can also be an attractive investment option. This means the local government has policies and regulations in place that make it easier for businesses to thrive. A thriving business community can lead to job growth, which in turn can drive demand for real estate, either residential or commercial.

According to a recent article (May 2023) in Fox Business and a WalletHub ranking report, here are the top 10 cities to start a business thanks to a business-friendly environment:

  1. Miami, FL
  2. Orlando, FL
  3. Boise, ID
  4. Austin, TX
  5. Tampa, FL
  6. Jacksonville, FL
  7. Scottsdale, AZ
  8. Atlanta, GA
  9. Fort Worth, TX
  10. Hialeah, FL

These are just the top 10 per the recent article, however there are many cities which qualify as well. Our specialists can help you in your search.

3. Conservative ideological environment

Political climate and ideology can also play a role in determining the best cities or MSAs to invest in. Some investors may prefer areas with a conservative ideology, as this can often lead to lower taxes and less government regulation. However, it is important to note that political climate can change over time, so it should not be the sole deciding factor in your investment decision.

4. Best population growth

A city or MSA with a growing population can indicate potential for real estate investment success. With a growing population, there is a higher demand for housing and commercial properties, which can lead to increased property values and rental prices. It is important to look at the projected population growth, as well as the current growth rate, when considering potential investment location.

5. Retail growth opportunities

Investing in cities or MSAs with strong retail growth can also be beneficial for real estate investors. This means there is a growing demand for retail spaces, which can lead to higher rental rates and property values. It is important to research the local economy and consumer spending trends when considering areas with strong retail growth potential.

6. Other factors to consider

In addition to the above key factors, there are other aspects that should be taken into consideration when determining the top cities or MSAs to invest in. These can include the overall economic stability and growth of the area, employment opportunities, crime rates, and infrastructure development.

7. Conduct thorough research

Ultimately, it is important to conduct thorough research when considering potential investment locations. This includes examining market trends, talking to a commercial real estate professional, and analyzing data on population growth, employment rates, and economic stability. It is also helpful to visit the area in person to get a feel for the community and its potential for investment success.

In conclusion, when looking for the top cities or MSAs to invest in today, it is crucial to consider factors such as tax policies, business environment, population growth, retail opportunities, and other relevant aspects. By carefully analyzing these key factors and conducting thorough research, you can make an informed decision that will lead to a successful return on your real estate investment. So don’t overlook the importance of location when it comes to investing in real estate and take advantage of these top factors to help guide your investment decisions.

What are the top ten cities an investor should consider investing in?

Based on various sources and these factors to consider, here are the top 10 cities to consider investing in today:

  1. Dallas, Texas
  2. Atlanta, Georgia
  3. Huntsville, Alabama
  4. Tampa, Florida
  5. Austin, Texas
  6. Knoxville, Tennessee
  7. Jacksonville, Florida
  8. Cincinnati, Ohio
  9. Baltimore, Maryland
  10. Las Vegas, Nevada


Along with the cities mentioned earlier having business friendly environments, remember, these are just a few of the top cities to consider. It is important to do your own research and connect with a commercial real estate professional, such as Coldwell Banker Commercial Capital Advisors, to determine which location aligns best with your investment goals and strategies. Keep these factors in mind when deciding where to invest and remember that thorough research and careful consideration can lead to a successful return on your real estate investment.

For the past 40+ years it has been our honor and pleasure to help clients achieve their investment goals through commercial real estate investing through…

  • Our Exclusive Nationwide Investment Network
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To Learn More, Give CBC Capital Advisors a Call at (806) 793-0888

In addition, you can learn all about our exclusive nationwide investing network and capabilities by watching Rick Canup’s short investment presentation below.