Thriving in a Recession: Top 7 States for Higher ROI in Commercial Real Estate Investing

With our vast experience in helping clients invest in the best markets nationwide, we wanted to share what we think are the top 7 states to consider investing in commercial real estate during economic downturns.

The current economic downturn has been tough on several industries, and commercial real estate (CRE) hasn’t been spared either. We are still feeling the effect of the 2020 pandemic and its impact on businesses across all sectors, leading to increased office space vacancies, among other things.

Despite that, there are specific markets throughout the US where the commercial real estate sector is thriving.

If you’re looking to invest in CRE, it’s worth considering these top seven business friendly and fastest-growing states that offer significant returns on investment (ROI).

Texas: Known for its business-friendly policies and vibrant economy, Texas has shown remarkable resilience even during economic downturns. Major cities like Houston, Dallas, and Austin have experienced significant growth, fueling demand for retail, office, and industrial spaces. The state’s diversified economy, with a strong presence in industries like energy, technology, and healthcare, further increases the potential for high ROI in commercial real estate investments. Many of Texas’s secondary and tertiary markets are thriving as well.

Florida: Florida consistently ranks high in terms of commercial real estate growth, even during recessions. The state benefits from a strong tourism industry, attracting millions of visitors each year. As a result, there is a steady demand for hotels, resorts, and entertainment venues. Florida’s major cities, such as Miami, Orlando, and Tampa, are also experiencing rapid population growth, driving the need for retail and residential spaces. Moreover, Florida offers favorable tax policies and a pro-business environment, making it an ideal state for commercial real estate investors looking for high returns.

Arizona: Arizona has become a hot spot for commercial real estate investments, particularly in the industrial sector. The state’s favorable tax policies and business-friendly environment have attracted major companies such as Amazon and Intel to establish operations there. As a result, Phoenix ranked second on a 2020 list of top-performing metropolitan areas for commercial real estate returns at 11%. With its growing population and strong job market, Arizona shows great potential for investors looking for high ROI in commercial real estate.

Georgia: Georgia’s commercial real estate market has been steadily growing over the years, with continued demand for office, retail, and industrial properties. The state’s business-friendly environment and strategic location make it an attractive choice for companies looking to expand or relocate. In 2020, Atlanta was ranked as the fifth highest-performing metropolitan area in terms of commercial real estate returns at 10%. With its diverse economy and strong job growth, Georgia is a top contender for investors seeking high ROI in commercial real estate.


Colorado: Colorado has been quietly flourishing in recent years. The state’s strong economy, fueled by sectors like technology, aerospace, and energy, has attracted major corporations and a highly skilled workforce, including tech giants like Google and Amazon. This has resulted in increased demand for office spaces, particularly in cities like Denver and Boulder. Denver has also seen particular success in the multifamily sector by being one of the top cities for multifamily investment according to a recent report, due to its strong job growth and high demand for rental properties.

Tennessee: Nashville, in particular, has been identified as a hotspot for commercial real estate. The city has seen significant growth due to its friendly environment for both homeowners and businesses, with low taxes and a cost of living that was relatively low before building demand started to outpace supply. Large companies like Amazon and Oracle have also contributed to Nashville’s growth.

North Carolina: Charlotte is experiencing a positive feedback loop that’s perfectly suited for the expansion of commercial real estate. As businesses grow and prosper, new people continue moving to the area, fueling economic growth and encouraging additional companies to invest in the area. If trends continue, Charlotte will need new warehouses, office buildings, and apartment complexes for many years to come.

Although the commercial real estate sector may have taken a hit due to the pandemic, there are specific hotspots worth considering for investment. The top seven states we have discussed; Texas, Florida, Arizona, Georgia, Colorado, Tennessee, and North Carolina have some of the strongest commercial real estate markets in the United States.

 

Industry experts expect each of these markets to remain stable in the coming years, thanks to trends like population growth, business-friendly policies, and attractive incentives.

If you’re planning on investing in commercial real estate, it’s worth taking a closer look at these states to see if your capital would generate the ROI you’re looking for.

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
  • Off-Market Commercial Real Estate Opportunities – Nationwide
  • and Saving Taxes with 1031 Exchanges

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.