The Best Cities to Buy Office Property in 2023

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Commercial real estate investors are always looking for the next best place to invest. Factors that go into this decision include current market conditions, prospects of the city or region, and potential return on investment.

This list looks at cities forecasted to have the best office markets in 2023, according to Emerging Trends in Real Estate 2023 from PwC and data from Crexi’s platform. Factors considered include population and job growth, vacancy rates, and rent prices. If you’re looking to invest in commercial property, consider these cities for the new year.

10 Top Cities for Office Investing in 2023

For commercial investors interested in buying office properties, the following ten cities are worth keeping on your radar in 2023. These markets are predicted to experience healthy growth, thanks to strong economic fundamentals and increased interest from local and foreign investors.

Read more about each city’s market outlook and investment prospects. Except where otherwise noted, demographic information is from and, while commercial real estate statistics are from the Q3 2022 U.S. Office MarketBeat report from Cushman & Wakefield and based on Crexi’s internal database.

Downtown of the city of Miami, USA

1. Miami

Miami is a significant cultural, commercial, financial, and international trading center. Over 461,000 people reside in the city, while Metropolitan Miami is home to over 6 million residents, making the metro the 9th most populous in the country. The metropolitan area has a large concentration of international banks, television production companies, and industries.

With a robust economy, pro-business government, fantastic quality of life, and ideal geographic location, Miami’s commercial real estate markets are ranked among the top investment destinations by Emerging Trends. 

Employment has soared by more than 3.2%, helping to keep the demand for office space in Miami solid and steady. With just under 40 million square feet of office inventory, overall asking rents are $47.65/SF per year (full-service gross), and 3 million square feet of new leases have been signed year-to-date.

On Crexi, average asking prices for Miami offices have jumped by 10.7% so far this year, while average occupancy rates have climbed almost 10% compared to 2021 absorption.

West Palm Beach, Florida, USA downtown skyline.

2. West Palm Beach

Located in southeastern Florida, West Palm Beach is a vibrant city with a rich history. The city is home to various businesses and cultural attractions, and its proximity to the Atlantic Ocean makes it a popular tourist destination. West Palm Beach is also a major center for banking and finance, and its economy is diverse and robust.

According to the West Palm Beach office market report Q3 2022 from Avison Young, the office market is booming, with major financial institutions setting up shop and employees returning to offices at a high rate post-pandemic. 

New leases have been signed for more than 1.5 million square feet this year, driving vacancy down below 12% and boosting asking rents to $42.84/SF, full-service growth. The total office inventory in West Palm Beach is 22,656,935 SF, and just 613,000 SF of space is currently under construction.

On Crexi, the median sold price per square foot for West Palm Beach offices this year-to-date was $275, compared to a median of $249 per square foot in 2021.

A look at downtown Raleigh's skyline with crepe myrtle trees blooming.

3. Raleigh/Durham

Raleigh and Durham, North Carolina, are two of the most vibrant and fastest-growing cities in the United States. They offer a unique combination of Southern hospitality and charm with an abundance of cultural amenities and opportunities. The Research Triangle region is home to some of the world’s top universities and companies, making it a highly sought-after destination for businesses and families.

Demand for office space in Raleigh/Durham has been steadily increasing, and experts project that to continue through 2023. The region is home to over 2.1 million people, and unemployment is down to 2.8%, according to the Bureau of Labor Statistics (September 2022). Some of the fastest-growing job sectors are the most prominent office space users, including professional and business services, information services, and financial activities.

So far this year, Raleigh/Durham’s average asking rent has been less than $31 per square foot, and more than 2.6 million total square feet leased. Developers are interested in future office opportunities in the area and are currently constructing nearly 1.5 million additional square feet of space.

On Crexi, Raleigh reported a median closing price of $311 per square foot so far this year, up from $224 in 2021.

A far-off view of the mountains with Salt Lake City in the foreground.

4. Salt Lake City

Salt Lake City, Utah, is a thriving metropolis with a lot to offer commercial real estate investors. The city’s strong economy, diverse population, and many amenities make it an attractive place to do business. Salt Lake City is also conveniently located near several major transportation hubs, making it easy to get around.

With all these factors considered, it’s no wonder that Salt Lake City is one of the most popular places to invest in commercial real estate. The market demand for Class A office space is consistently strong as employers look for high-quality accommodations to lure employees back to the office. 

Office rents in Salt Lake are relatively affordable compared to other Sunbelt markets. Overall asking rents average $25.74/SF per year, with vacancy rates below 19%. Office inventory totals just over 58 million square feet and leases have been signed for more than 3.9 million square feet of office space year-to-date. 

Per Crexi data, average occupancy for new listings jumped 15% in the last year compared to 2021 levels, and asking prices have shot up thanks to plentiful finished constructions and Class A development deliveries.

The downtown skyline of Tampa, Florida.

5. Tampa/St. Petersburg

Tampa/St. Petersburg has been ranked the third-largest growing metro area in the country for entrepreneurs. It is also a vibrant commercial real estate hub. Both cities are excellent choices for businesses relocating to Florida. The area offers a highly skilled workforce, affordable office space, and a favorable business climate.

Port Tampa Bay and Tampa International Airport (TIA) are two of the region’s major economic engines. According to the City of Tampa, the Port has an economic impact of over $18 billion and provides over 85,000 jobs directly and indirectly. At the same time, TIA serves over 18 million travelers and provides non-stop flights to dozens of desirable national and international business locations.

The Tampa-St. Petersburg-Clearwater, FL, metro area is home to over 3.2 million residents and more than 31 million square feet of office space. Employment growth is 2.4% year-over-year, and unemployment is down to just 2.5%. Some of the fastest-growing job sectors in Tampa also use a lot of office space, including information and financial activities. Overall, the average asking rent for office space in Tampa/St. Petersburg is $30.31/SF, full-service gross, with leases signed for nearly 3 million square feet of office space year-to-date.

On Crexi, year-to-date office sales have already hit $754M in reported transaction value, following $806M in total sales last year.

Fort Lauderdale, Florida, USA skyline.

6. Fort Lauderdale

Fort Lauderdale is one of the top three major cities in the Miami metro area. It is a thriving tourist destination with a booming boat manufacturing industry. In addition, the city offers access to local and international markets and a large pool of educated workers. These factors have increased office market absorption and stable vacancy rates over the past quarter.

As employees return to offices, the demand for high-quality office space will continue increasing. For example, this year, the One Financial Plaza office tower in Downtown Fort Lauderdale sealed 17 lease transactions totaling 52,000 square feet. According to a report from Commercial Observer, the deals included six new-to-market tenants, two in-market relocations, and several renewals and expansions, bringing occupancy to 92%.

Overall asking rents for office space in Fort Lauderdale are $37.84/SF, with leasing activity totaling over 2 million square feet year-to-date. The metro area is home to 26.5 million square feet of office space, and vacancy is down to just 17%. Despite the growing demand for offices in Fort Lauderdale, no new office buildings are under development.

Per Crexi data, total transactions have almost doubled year-to-date in 2022, with $519M total sales reported so far compared to 2021’s $365M in value. 

Aerial of Auston Texas office buildings from the Congress Avenue Bridge next to the Statesmans Bat Observation Center...

7. Austin

Austin is a rapidly growing city with a strong economy and a highly educated workforce. The city has a vibrant downtown area with various restaurants, bars, and retail stores. Austin is also home to many major employers, including the University of Texas, Dell, IBM, and Apple. The city’s location in the central United States makes it ideal for businesses to relocate or expand their operations.

Austin’s population is expected to grow in the coming years, making it an attractive market for commercial real estate developers and business tenants. The region is nicknamed “Silicon Hills” due to the influx of tech and development companies and is also home to countless research, healthcare, and financial institutions.

A robust economy, growing population, and strong job growth make Austin an attractive destination for office real estate investing in 2023. Commercial real estate investors and office building developers are quickly taking advantage of newly available opportunities in Austin. Over 5.6 million square feet of new office space is currently being built, in addition to the 62.5 million square feet of existing office space in the metro area. Leasing activity has surpassed 4.2 million square feet year-to-date, even though the average asking rent for office space is just below $46/SF.

On Crexi, asking prices for offices in Austin are up nearly 9% year-over-year, with a median closed price hitting $570 per square foot so far in 2022 compared to 2021’s median of $270.

The sun sets behind a bridge in Nashville, Tennessee.

8. Nashville

Nashville is known for its music and entertainment industry. The city is also a hub for business and commerce, with many major corporations headquartered here. Nashville is home to a diverse and rapidly-growing population and has a thriving economy. The cost of living in Nashville is relatively affordable, making it an attractive option for businesses and families. The city also offers a variety of transportation options, including an international airport, Amtrak service, and a robust public transit system.

In Nashville, Fortune 500 companies with office space include Ernst & Young, Dell, Deloitte, UBS, Dollar General, BNY Mellon, Community Health Systems, Hospital Corporation of America, and Tractor Supply Company. The number of office-using businesses in Nashville makes the market a very attractive area to invest in office buildings.

Commercial real estate investors, office building developers, and tenants like what they see in Nashville. The metro area is home to about 48 million SF of office inventory, with full-service asking rents averaging $32.66/SF per year. Over 3 million square feet of new office space is under construction, with leasing activity of nearly 2.3 million SF year to date. On Crexi, Nashville office occupancy has climbed back up to nearly 74%, a stunning recovery from 2021’s 45.55% average absorption.

Downtown San Diego and the convention center.

9. San Diego

San Diego is a beautiful coastal city with a Mediterranean climate, making it a popular tourist destination. The city is also home to many businesses in the tech and biotech industries. In the most recent Emerging Trends report, this combination of factors has led to San Diego being ranked as one of the best markets to buy and hold office property in the U.S.

Investors looking to purchase office property in San Diego will find a market that is poised for continued growth. The city’s strong economy and population growth are expected to drive demand for office space, and limited new construction will keep vacancy rates low. This combination of factors makes San Diego an attractive market for office investors.

Overall, the asking rent for office space in San Diego is $43.45/SF on average. Leases have been signed for nearly 6.8 million square feet of office space year-to-date, driving vacancy rates down to about 13%. The metro area is home to about 84 million square feet of office space and boasts another six million SF under construction.

While San Diego’s transaction volume faltered slightly in the wake of the pandemic, median close prices jumped to $560 per square foot so far in 2022 compared to 2021’s $428. 

River walk in San Antonio city downtown skyline cityscape of Texas USA at sunset

10. San Antonio

When it comes to office space, San Antonio offers various options to suit any business’s needs. From traditional office buildings to creative loft spaces and everything in between, there is something for everyone in San Antonio. And with new developments underway, the future looks even brighter for businesses looking to invest and lease office space in this vibrant city.

The population is growing, new businesses are opening, and ongoing energy and excitement is in the air. The city is home to a diverse mix of people and cultures, which makes it a dynamic and vibrant place to live, work, and play. San Antonio is also a very business-friendly city. The cost of living is relatively low, the workforce is highly skilled and educated, and several incentives are available to businesses located there.

San Antonio is home to nearly 50 million square feet of office space, with just 1.4 million SF under construction. Office rents are a relatively affordable $24.13/SF, with leasing activity totaling 1.7 million square feet year-to-date. The rising number of office-using employment fields, like information and financial services, is driving the need for more office space in San Antonio.

On Crexi, San Antonio’s average asking price per square foot has jumped an impressive 33% year-over-year, with cap rates compressing from 6.8% to 5.2% in 2022.

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

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Shanti Ryle
Shanti Ryle

Content Marketing Manager

Shanti leads Crexi's content marketing strategies with 7+ years of content development experience, creating everything from blog posts to award-winning podcasts. Previously, she worked on content teams at Snapchat, Weedmaps, and HopSkipDrive as well as developed copy, articles, and media for freelance publications.

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