5 Surprising Commercial Real Estate Markets to Watch in 2025

Commercial real estate is a sizable investment, and calculating the markets and assets where you can derive the highest ROI often means looking in markets where the price is right. As global and economic factors shift and headwinds ebb and flow, the new opportunities arising in these yet-untapped markets are ready for investors to make their next move.

For commercial real estate investors seeking the best cities for real estate investments in 2025, these five markets offer strong economic fundamentals and significant growth potential. If you want to invest in property, here are five emerging commercial real estate markets in 2025 where you'll find the interesting opportunities to acquire high-potential properties poised for success in the coming years. Although rents and purchase prices may be high or low now, they may increase over the next few years, making them ideal markets for those looking to get the best possible ROI.

These five markets have piqued the curiosity of savvy investors and are worthy of consideration, according to Emerging Trends in Real Estate 2025 from the Urban Land Institute and PwC. Per capita GDP and population growth over the next five years are expected to remain solid and steady, the cost of doing business is low, and rental housing is still relatively affordable.

We also pulled detailed insights from Crexi Intelligence, supplying current market and recent comps data to provide a holistic overview of each city’s CRE market. This data includes price and rent per square foot, days on market, units available, square footage available, and other data points.

1. Manhattan

As the nation’s largest city and a global financial hub, New York City remains a critical center for financial services, while also thriving as a top tourist destination, healthcare hub, and bastion of higher education. Insights from the Emerging Trends report underscore how New York’s post-pandemic recovery has gained momentum, with metro job growth outpacing national trends in nearly every quarter over the past three years. Key drivers of employment gains include the education, health services, and leisure and hospitality sectors, though office-using sectors remain in decline. 

Manhattan's commercial property market continues to attract global investors, with its steady recovery and strong leasing activity bolstered by the financial and healthcare sectors, especially in its business districts. Data from Moody’s and building security systems indicate that office use in New York exceeds the average of other major cities. Slowed construction and renewed leasing activity—particularly in the financial services sector—are helping to stabilize Manhattan’s office availability rates.

Manhattan’s commercial property market continues to recover post-pandemic, offering opportunities in retail and multifamily sectors driven by rebounding tourism and immigration. On one hand, housing affordability continues to be a challenge, with the city’s cost of living at 120% of the national average. However, higher return-to-office rates and favorable demographic shifts have sparked renewed demand for Manhattan apartments. International immigration has rebounded, and out-migration trends are returning to pre-pandemic levels, strengthening the local labor force. 

While New York is on the right track in the near term, growth is expected to moderate. Tourism and immigration are fueling population and employment gains, but higher-wage office-using sectors face headwinds, which could suppress income growth. Despite these hurdles, investor confidence remains strong, with delayed momentum from the pandemic driving rebounding fundamentals and renewed capital interest. For commercial real estate investors, New York’s mix of stable demand, a diversifying economy, and ongoing recovery presents a compelling opportunity in the short term, even as long-term growth may face constraints.

Crexi Insights

Crexi Intelligence allows users to evaluate commercial real estate properties and markets instantly. It provides access to a comprehensive database of sales comparables, market reports, analytics, and demographics. Here is the most recent New York City leasing and sales data as of November 2024:

Industrial

For Lease (active)

• Asking rent (annual): $66/SF
• Spaces available on Crexi: 158
• Median SqFt: 2,055
• Days on market: 395

For Sale (active)

• Asking sale price (median): $2.1 million
• Price/SqFt: $529
• Asking cap rate: 7.0%
• Total listings: 8
• Days on market: 337

Sales Comps (past 12 months)

• Median sales price (last 1 year): $4 million
• Sold price /SqFt: $354
• Total sales volume: $553 million

Retail

For Lease (active)

• Asking rent (annual): $90/SF
• Spaces available on Crexi: 158
• Median SqFt 2,347
• Days on market: 202

For Sale (active)

• Asking sale price (median): $4 million
• Price/SqFt: $909
• Asking cap rate: 5.7%
• Total listings: 193
• Days on market: 194

Sales Comps (past 12 months)

• Median sales price (last 1 year): $1.8 million
• Sold price /SqFt: $87
• Sold cap rate: 6.4%
• Total sales volume: $3.3 billion
• Days on market: 242

Office

For Lease (active)

• Asking rent (annual): $49/SF
• Spaces available on Crexi: 1,718
• Median SqFt: 2,000
• Days on market: 175

For Sale (active)

• Asking sale price (median): $1.4 million
• Price/SqFt: $781
• Asking cap rate: 5.0%
• Total listings: 10
• Days on market: 223

Sales Comps (past 12 months)

• Median sales price (last 1 year): $3 million
• Sold price /SqFt: $60
• Total sales volume: $3.6 billion
• Days on market:  341

Multifamily

For Sale (active)

• Median asking price: $6.5 million
• Price/SqFt: $785
• Asking cap rate: 5.2%
• Days on market: 169
• Total listings on Crexi: 164

Sales Comps (past 12 months)

• Median sold price: $997,700 
• Sold price/SqFt: $28
• Sold price/unit: $26,800
• Total sales volume: $5.7 billion
• Sold cap rate: 6.0%
• Total SqFt sold: 137.1 million
• Days on market (median): 573

2. Detroit

Detroit, Michigan, exemplifies resilience and innovation as the state’s largest city and a pivotal US metropolitan area. Historically renowned as the world’s automotive capital, Detroit’s economy has diversified to include significant growth in healthcare, finance, and technology sectors. Culturally, Detroit offers a vibrant scene characterized by classic cars, a dynamic culinary landscape, and a rich musical heritage, contributing to its status as a thriving urban center.

Recent trends indicate a positive shift in Detroit’s population dynamics. After decades of decline, the city experienced growth for the first time in 66 years, adding nearly 2,000 residents from July 2022 to July 2023, bringing the population to 633,218. The broader metropolitan area, encompassing cities like Pontiac and Mt. Clemens, remains a hub of activity, attracting individuals with its economic opportunities and vibrant lifestyle. The region’s adaptability underscores its enduring appeal amid change. The cost of living in Detroit is approximately 8% lower than the national average, enhancing its attractiveness for both residents and investors.

Detroit’s real estate growth is fueled by its dynamic blend of traditional industries like automotive and emerging sectors such as technology and healthcare. While it remains a center for the automotive industry, Detroit’s economic growth is accelerating as the city emerges as a hub for high-tech jobs, offering a promising environment for commercial real estate investors.

The local economy continues to grow steadily, marked by job gains and wage increases. The Detroit-Warren-Den Statistical Area (MSA) boasts a Gross Domestic Product (GDP) of nearly $284 billion, reflecting significant growth over the past decade. The region employs over 2.3 million people across 11 counties, with major employers such as Ford Motor Co., Stellantis NV, General Motors Co., the University of Michigan, Corewell Health, and the US Government.

Crexi Insights

Industrial

For Lease (active)

• Asking rent (annual): $7/SF
• Spaces available on Crexi: 207
• Median SqFt: 3,215
• Days on market: 214

For Sale (active)

• Asking sale price (median): $697,000
• Price/SqFt: $47
• Asking cap rate: 8.2%
• Total listings: 153
• Days on market: 288

Sales Comps (past 12 months)

• Median sales price (last 1 year): $102,500
• Sold price /SqFt: $14
• Total sales volume: $31.7 million
• Days on market:  269

Retail

For Lease (active)

• Asking rent (annual): $20/SF
• Spaces available on Crexi: 346
• Median SqFt: 3,000
• Days on market: 269

For Sale (active)

• Asking sale price (median): $345,000
• Price/SqFt: $89
• Asking cap rate: 8.3%
• Total listings: 257
• Days on market: 165

Sales Comps (past 12 months)

• Median sales price (last 1 year): $76,200
• Sold price /SqFt: $28
• Sold cap rate: 6%
• Total sales volume: $66.8 million
• Days on market:  211

Office

For Lease (active)

• Asking rent (annual): $21/SF
• Spaces available on Crexi: 330
• Median SqFt: 4,597
• Days on market: 287

For Sale (active)

• Asking sale price (median): $437,000
• Price/SqFt: $78
• Asking cap rate: 7.7%
• Total listings: 80
• Days on market: 164

Sales Comps (past 12 months)

• Median sales price (last 1 year): $96,000
• Sold price /SqFt: $38
• Total sales volume: $6.8 million
• Days on market:  606

Multifamily

For Sale (active)

• Median asking price: $375,000
• Price/SqFt: $72
• Asking cap rate: 8.0%
• Days on market: 97
• Total listings on Crexi: 154

Sales Comps (past 12 months)

• Median sold price: $46,100 
• Sold price/SqFt: $27
• Sold price/unit: $2,088
• Total sales volume: $147.8 million
• Sold cap rate: 7.8%
• Total SqFt sold: 3.8 million
• Days on market (median): 121

3. Columbus

Post-pandemic real estate opportunities in Columbus showcase how cities with diversified economies and robust population growth can drive sustainable returns for investors. The Ohio state capital stands out as a growing metropolitan hub, known for its vibrant neighborhoods like the Short North Arts District and German Village, as well as attractions such as The Ohio State University and the COSI museum. The city set a record in 2023 with over 51 million visitors, driven by its dynamic mix of business, tourism, and education. 

Columbus has become the 15th largest city in the US and the 38th largest market by value in NCREIF’s NPI, moving up three spots since 2019. Recent performance metrics reveal annualized five- and 10-year total returns of 2.9% and 4.9%, with renewed investor optimism earning it a spot on Urban Land Institute’s Emerging Trends in Real Estate 2025 movers and shakers list.

Multifamily investment opportunities in Columbus are particularly attractive due to steady population growth and favorable cost-of-living metrics.According to Bank of America Research, the city led the nation in population growth in 2023, increasing by 1.1% year-over-year. Since 2014, its population has grown at a 0.9% compound annual growth rate, while metro employment expanded by 1.5% annually. The city’s real GDP has grown by 2.7% annually over the same period. 

With a cost of doing business at 98% of the national average, Columbus is more affordable than many major cities, helping attract Fortune 500 companies and leading tech firms, earning it the nickname “Silicon Heartland” following the CHIPS Act. Moody’s Analytics forecasts steady net migration of 13,000 people annually over the next decade, reinforcing its appeal as an affordable, business-friendly destination. These factors make Columbus a compelling market for sustained commercial real estate investment.

Crexi Insights

Here is the most recent Columbus leasing and sales data as of November 2024:

Industrial

For Lease (active)

• Asking rent (annual): $10/SF
• Spaces available on Crexi: 154
• Median SqFt: 8,750
• Days on market: 211

For Sale (active)

• Asking sale price (median): $1.9 million
• Price/SqFt: $82
• Asking cap rate: 7.1%
• Total listings: 45
• Days on market: 119

Sales Comps (past 12 months)

• Median sales price (last 1 year): $782,500
• Sold price /SqFt: $58
• Sold cap rate: 7.5%
• Total sales volume: $272.3 million
• Days on market: 76

Retail

For Lease (active)

• Asking rent (annual): $18/SF
• Spaces available on Crexi: 515
• Median SqFt: 3,133
• Days on market: 265

For Sale (active)

• Asking sale price (median): $1.3 million
• Price/SqFt: $237
• Asking cap rate: 6.6%
• Total listings: 90
• Days on market: 121

Sales Comps (past 12 months)

• Median sales price (last 1 year): $462,500
• Sold price /SqFt: $94
• Sold cap rate: 6.7%
• Total sales volume: $137.7 million
• Days on market:  184

Office

For Lease (active)

• Asking rent (annual): $16/SF
• Spaces available on Crexi: 859
• Median SqFt: 3,005
• Days on market: 381

For Sale (active)

• Asking sale price (median): $1 million
• Price/SqFt: $168
• Asking cap rate: 7.7%
• Total listings: 10
• Days on market: 96

Sales Comps (past 12 months)

• Median sales price (last 1 year): $675,000
• Sold price /SqFt: $84
• Sold cap rate: 9.6%
• Total sales volume: $131.9 million
• Days on market:  166

Multifamily

For Sale (active)

• Median asking price: $28,500
• Price/SqFt: $155
• Asking cap rate: 6.0%
• Days on market: 97
• Total listings on Crexi: 263

Sales Comps (past 12 months)

• Median sold price: $224,800 
• Sold price/SqFt: $158
• Sold price/unit: $131m199
• Total sales volume: $962.3 million
• Sold cap rate: 6.4%
• Total SqFt sold: 4.9 million
• Days on market (median): 143

4. Charleston

Emerging CRE investment trends indicate that cities like Charleston, with its strong manufacturing base and thriving port infrastructure, are becoming increasingly attractive to investors seeking long-term stability. The South Carolina city is undergoing significant economic transformation, marked by robust job growth and an expanding economic base. Employment in the Charleston metro area has grown at an impressive 2.9% compound annual growth rate since 2014, more than double the national average.

Charleston’s economic growth and its position as a leading logistics hub make it a top destination for industrial and retail investments. Between August 2023 and July 2024, employment surged by 5.0%, making it the second-fastest-growing job market in the US, trailing only Merced, California. Tourism remains a key economic driver, with leisure and hospitality accounting for a substantial share of local employment and output. The city attracts 15 million visitors annually, contributing $12.8 billion to the economy in 2022, and the influx of wealthier residents to the region is expected to further boost spending in the coming years.

Industrial real estate trends for 2025 highlight Charleston’s rapid manufacturing growth and the strategic importance of its deepwater port. Manufacturing jobs have increased by 21% since 2021, fueled by investments in electric vehicle production and the Port of Charleston. The port, the sixth largest in the US by container volume, has benefited from over $2 billion in infrastructure upgrades, including the Charleston Harbor Deepening Project, which made it the deepest harbor on the East Coast at 52 feet. 

While Charleston faces challenges like rising housing costs—median home prices reached over $561,000 in October 2024 and rose 6.6% YoY—its favorable demographics, diversified economy, and strong business climate continue to attract investment, positioning it as a burgeoning cultural and economic hub.

Crexi Insights

Here is the most recent Charleston leasing and sales data as of November 2024:

Industrial

For Lease (active)

• Asking rent (annual): $18/SF
• Spaces available on Crexi: 38
• Median SqFt: 3,756
• Days on market: 178

For Sale (active)

• Asking sale price (median): $3.9 million
• Price/SqFt: $206
• Asking cap rate: 3.0%
• Total listings: 21
• Days on market: 154

Sales Comps (past 12 months)

• Median sales price (last 1 year): $1.3 million
• Sold price /SqFt: $100
• Total sales volume: $3.2 million

For Lease (active)

• Asking rent (annual): $18/SF
• Spaces available on Crexi: 38
• Median SqFt: 3,756
• Days on market: 178

For Sale (active)

• Asking sale price (median): $3.9 million
• Price/SqFt: $206
• Asking cap rate: 3.0%
• Total listings: 21
• Days on market: 154

Sales Comps (past 12 months)

• Median sales price (last 1 year): $1.3 million
• Sold price /SqFt: $100
• Total sales volume: $3.2 million

For Lease (active)

• Asking rent (annual): $35/SF
• Spaces available on Crexi: 150
• Median SqFt: 2,500
• Days on market: 322

For Sale (active)

• Asking sale price (median): $2.2 million
• Price/SqFt: $499
• Asking cap rate: 5.0%
• Total listings: 54
• Days on market: 123

Sales Comps (past 12 months)

• Median sales price (last 1 year): $1 million
• Sold price /SqFt: $439
• Total sales volume: $34.9 million
• Days on market:  1,025

Office

For Lease (active)

• Asking rent (annual): $34/SF
• Spaces available on Crexi: 242
• Median SqFt: 1,875
• Days on market: 181

For Sale (active)

• Asking sale price (median): $1.6 million
• Price/SqFt: $369
• Asking cap rate: 5.7%
• Total listings: 49
• Days on market: 125

Sales Comps (past 12 months)

• Median sales price (last 1 year): $1.7 million
• Sold price /SqFt: $657
• Total sales volume: $96 million
• Days on market:  224

Multifamily

For Sale (active)

• Median asking price: $2.4 million
• Price/SqFt: $396
• Asking cap rate: 6.1%
• Days on market: 119
• Total listings: 22

Sales Comps (past 12 months)

• Median sold price: $451,500 
• Sold price/SqFt: $286
• Sold price/unit: $413,300
• Total sales volume: $655.7 million
• Sold cap rate: 7.2%
• Total SqFt sold: 19.2 million
• Days on market (median): 456

5. New Orleans

New Orleans is the largest city in Louisiana and serves as a key Southern port along the Mississippi River, with access to the Gulf of Mexico. Known for its rich culture, history, and unique architecture, the metropolitan area includes Orleans, Jefferson, St. Bernard, and St. Tammany parishes. Its economy is driven by tourism, maritime industries, and oil and gas, with emerging growth in tech startups and creative businesses. 

Revitalization efforts post-Hurricane Katrina have attracted young professionals and families, supported by government incentives like the Louisiana Economic Development’s Quality Jobs Program. The metro area’s population exceeds 1.2 million, with a 5% increase since 2010. Median household income is $61,602, growing by 8.8% over the past year, though it remains below the national average.

The city’s submarkets, such as the Central Business District and Warehouse District, are hubs for commercial real estate development, featuring office spaces, hotels, and mixed-use projects. Major employers, including Ochsner Health System, Tulane University, and Entergy Corporation, alongside private companies like Chevron and Boeing, ensure job market stability. Additionally, adaptive reuse in CRE markets such as New Orleans is reshaping urban areas by converting office spaces and warehouses into mixed-use developments.

Key infrastructure, such as the Port of New Orleans and Louis Armstrong International Airport, supports regional growth, with rail volumes at the Port up 15% this year and $230 million approved for infrastructure projects. Notable developments include Shell’s planned office in the River District and the Ochsner Children’s Hospital expansion. With a $74 billion GDP and ongoing investments, New Orleans offers solid opportunities for commercial real estate investors.

Crexi Insights

Here is the most recent New Orleans leasing and sales data as of November 2024:

Industrial

For Lease (active)

• Asking rent (annual): $8/SF
• Spaces available on Crexi: 29
• Median SqFt: 10,000
• Days on market: 159

For Sale (active)

• Asking sale price (median): $1.2 million
• Price/SqFt: $83
• Asking cap rate: 7.5%
• Total listings: 20
• Days on market: 159

Sales Comps (past 12 months)

• Median sales price (last 1 year): $1.2 million
• Sold price /SqFt: $31
• Total sales volume: $2.5 million
• Days on market:  206

Retail

For Lease (active)

• Asking rent (annual): $22/SF
• Spaces available on Crexi: 238
• Median SqFt: 1,800
• Days on market: 227

For Sale (active)

• Asking sale price (median): $1.4 million
• Price/SqFt: $296
• Asking cap rate: 6.9%
• Total listings: 74
• Days on market: 149

Sales Comps (past 12 months)

• Median sales price (last 1 year): $675,000
• Sold price /SqFt: $195
• Sold cap rate: 8.5%
• Total sales volume: $18 million
• Days on market:  244

Office

For Lease (active)

• Asking rent (annual): $20/SF
• Spaces available on Crexi: 547
• Median SqFt: 2,200
• Days on market: 187

For Sale (active)

• Asking sale price (median): $1.7 million
• Price/SqFt: $226
• Total listings: 51
• Days on market: 147

Sales Comps (past 12 months)

• Median sales price (last 1 year): $475,000
• Sold price /SqFt: $214
• Total sales volume: $69.4 million
• Days on market:  48

Multifamily

For Sale (active)

• Median asking price: $1.2 million
• Price/SqFt: $209
• Asking cap rate: 6.6%
• Days on market: 118
• Total listings: 67

Sales Comps (past 12 months)

• Median sold price: $225,000 
• Sold price/SqFt: $93
• Sold price/unit: $68,800
• Total sales volume: $47.7 million
• Sold cap rate: 6.5%
• Total SqFt sold: 358,400
• Days on market (median): 142

Post-pandemic real estate opportunities in these five cities reflect a shift toward sustainable investments and innovative development strategies. High ROI real estate markets like Charleston and Columbus demonstrate the importance of targeting areas with strong job growth and affordable living costs. Conversely, Investors exploring profitable CRE investments should consider adaptive reuse projects, such as those seen in New Orleans’ historic districts, which offer unique long-term value.

For investors evaluating commercial real estate market analysis, Crexi Intelligence offers critical insights into metrics like vacancy rates and median sale prices across cities like Manhattan and Detroit. Understanding economic growth impacting real estate in cities like Columbus and Charleston can help investors identify high-potential markets before competition intensifies.

Get more commercial property data at your fingertips with Crexi Intelligence.