Best U.S. Markets For Commercial Office Space Investments

Grubb & Ellis, a commercial real estate company, conducted a study into the country's top 10 best office markets for real estate investors. Grubb & Ellis annually measures 52 office, industrial, retail and apartment markets against a number of set criteria that are vital to evaluate the performance of real estate investments.

In their annual study, the Chicago-based real estate company selected 10 U.S. office markets that are expected to perform particularly well over the next 5 years from 2007 through 2011. These office markets were ranked from 0 to 100 based on 16 property, economic, and demographic factors.

According to the Grubb & Ellis 2007 Real Estate Forecast, the following are the top 10 best office real estate markets in the country.

1. Washington, D.C. Metro - score of 70.8.
2. Los Angeles County (California) - score of 70.2.
3. Las Vegas (Nevada) - score of 69.6.
4. Dallas/Fort Worth (Texas) - score of 68.8.
5. Phoenix/Mesa/Scottsdale (Arizona) - score of 68.8 (actually tied for 4th).
6. Seattle/Tacoma/Bellevue (Washington State) - score of 68.7.
7. Orange County (California) - score of 66.5.
8. Orlando (Florida) - score of 64.7.
9. Houston (Texas) - score of 62.2.
10. Portland (Oregon) - score of 60.9.

According to the report, stable interest and capitalization rates will keep the real estate market strong through 2007, and real estate income will once again cover the appreciation component. The report predicts that the volume of investment transactions will stabilize in 2007, though at a high level. With real estate income expected to soar once again, the real estate market should be back on track as a solid income-generating investment.

Each of the regions noted above are stronger or weaker on different investment factors. If you are interested in investing in commercial real estate or need office space, be sure to seek out the services of a local commercial Realtor to guide you through this complex transaction. An experienced local commercial Realtor can advise you about both objective investment criteria, as well factors unique to a particular region based on your risk tolerance and investment objectives.