The Best Cities to Buy Office Property in 2024

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Investors in commercial real estate are constantly seeking the next profitable opportunity. Despite recent headwinds in the office sector, plentiful corners of the office market are offering a noticeable upside, especially in a market with lower prices than the mean. To find the best investment, industry players must consider current market trends, future growth prospects of a city or region, and the potential return on investment.

This article highlights the cities predicted to have the most potential for office investment in 2024. These predictions are based on Emerging Trends in Real Estate 2024 by PwC and data from Crexi Insights. Factors such as population growth, job market expansion, office vacancy rates, and rental prices have been considered. 

If you’re contemplating investing in commercial office property, these cities could be worth your attention as we approach the new year.

10 Top Cities for Office Investing in 2024

For those eyeing commercial investments in office spaces, here are ten cities you should watch in 2024. Predictions suggest these markets will see robust growth, backed by solid economic foundations, attracting local and overseas investors.

Unless stated otherwise, population data is sourced from CensusReporter.org and DataUSA.io, while commercial market stats come from the Q3 2023 U.S. Office MarketBeat report by Cushman & Wakefield. For the latest trends in each office market, we turn to Crexi Insights.

Let’s dive deeper into each city’s market forecast and investment potential. 

1. San Francisco

A sunset view of San Francisco's residential center

That’s right: the Bay Area is reclaiming its crown in the office sector. Despite having the highest vacancy rate on this list, San Francisco – Northern California’s cultural, commercial, and financial center – is home to a thriving tech sector with an impressive list of notable companies. These include global giants such as Salesforce, Uber, Twitter, and Wells Fargo. The city is also a hotbed for AI innovation, hosting trailblazers like OpenAI, a leading artificial intelligence lab, and attracting returning intellectual capital to the area.

The increasing footprint of AI companies in the city points towards a potential resurgence in office demand. With the San Francisco metro area’s population standing at around 4.6 million, there’s a robust talent pool that these companies can tap into, making the city even more attractive to investors.

San Francisco Office Market Overview

  • Inventory: 85,300,726 
  • Vacancy rate: 30.4%
  • Leasing activity: 3,567,758
  • Deliveries: 428,000 
  • Under construction: 51,409

Crexi Insights

For Lease (active)

  • Asking rate/SqFt (median): $40 per year
  • Median SqFt/listing: 848 SF
  • Days on market: 237
  • Total listings on Crexi: 1,411 spaces

For Sale (active)

  • Median asking price: $3.48 million
  • Price/SqFt: $606 
  • Asking cap rate: 5.0%
  • Days on market: 224
  • Total listings on Crexi: 49

Sales Comps (past 12 months)

  • Median sold price: $4.96 million
  • Sold price/SqFt: $424
  • Total sales volume: $671 million
  • Sold cap rate: 4.3%
  • Median SqFt sold/transaction: 11,700 SF
  • Days on market (median): 251

2. Cleveland

Known as a central hub for manufacturing and healthcare, Cleveland boasts a diverse economy. The city has also been making strides in the tech sector, with an emerging cluster of tech startups calling it home. With a population of over 2 million, the metro area boasts a population growth rate of more than 1.5% yearly, with median household incomes increasing by just over 7%.

As with many major metros, the office market has faced its share of challenges. There has been a rise in office vacancies, primarily driven by businesses adapting to hybrid work models and reassessing their office space needs. 

Despite these challenges, Cleveland’s office market shows promise. Last year, the city had the lowest office vacancy rate among major Midwest markets. Additionally, the city’s Central Business District (CBD) accounts for a significant portion of the office market, offering fully furnished office spaces with flexible terms. 

Cleveland Office Market Overview

  • Inventory: 90,616,898
  • Vacancy rate: 11.3%
  • Leasing activity: 1,077,308
  • Deliveries: 244,038 
  • Under construction: 2,161,454

Crexi Insights

For Lease (active)

  • Asking rate/SqFt (median): $18 per year
  • Median SqFt/listing: 2,500 SF
  • Days on market: 701
  • Total listings on Crexi: 362 spaces

For Sale (active)

  • Median asking price: $499,000
  • Price/SqFt: $88 
  • Asking cap rate: 9.3%
  • Days on market: 226
  • Total listings on Crexi: 21

Sales Comps (past 12 months)

  • Median sold price: $315,000
  • Sold price/SqFt: $82
  • Total sales volume: $87 million
  • Sold cap rate: 8.3%
  • Median SqFt sold/transaction: 4,582 SF
  • Days on market (median): 170

3. Miami

Miami boat port with trees in the foreground and the city of Miami behind the harbor

Miami is rapidly emerging as a destination for tech companies, benefiting from an influx of talent and venture capital investment. The metropolitan area is home to about 6.9 million. It boasts a population growth rate of 13% since 2010, with residents and businesses attracted by the quality of life and ease of business.

The market has seen an increase in asking rates and a rise in sale prices for premium properties, reflecting the city’s growing allure to commercial real estate investors. There has been a reduction in Class A availability, particularly in the thriving Wynwood submarket, which decreased significantly year on year. 

But what sets Miami apart is its unique blend of factors – its strategic location as a gateway to Latin America, diverse economy, and growing tech scene. These factors and Miami’s resilient office market trends make it an attractive city for office investors to consider in 2024.

Miami Office Market Overview

  • Inventory: 39,758,579 
  • Vacancy rate: 15.6%
  • Leasing activity: 2,532,826
  • Deliveries: 46,678 
  • Under construction: 1,371,005

Crexi Insights

For Lease (active)

  • Asking rate/SqFt (median): $40 per year
  • Median SqFt/listing: 1,457 SF
  • Days on market: 208
  • Total listings on Crexi: 993 spaces

For Sale (active)

  • Median asking price: $953,000
  • Price/SqFt: $553 
  • Asking cap rate: 5.0%
  • Days on market: 101
  • Total listings on Crexi: 176

Sales Comps (past 12 months)

  • Median sold price: $850,000
  • Sold price/SqFt: $436
  • Total sales volume: $685 million
  • Sold cap rate: 5.4%
  • Median SqFt sold/transaction: 2,054 SF
  • Days on market (median): 135

4. Houston

Houston, Texas, USA downtown city skyline and highway.

Houston, home to more than 7 million, is the 4th largest city in the US by population. Montgomery and Fort Bend counties – part of the metropolitan area – each report 10-year population growth rates of about 50%.

Known for its robust energy sector, the city is also making strides in other industries, diversifying its economy and office market. The city has been experiencing growth in its tech sector, with Houston recently ranked among the top cities for tech job growth. 

This tech-driven dynamism contributes to increased demand for office space, particularly in innovation districts like The Ion and East End. Furthermore, the city’s Energy Corridor and Central Business District have seen robust leasing activity, underscoring the ongoing appeal of these submarkets.

Houston Office Market Overview

  • Inventory:188,445,424 
  • Vacancy rate: 25.3%
  • Leasing activity: 11,774,444
  • Deliveries: 129,600 
  • Under construction: 741,997

Crexi Insights

For Lease (active)

  • Asking rate/SqFt (median): $19 per year
  • Median SqFt/listing: 1,427 SF
  • Days on market: 361
  • Total listings on Crexi: 5,550 spaces

For Sale (active)

  • Median asking price: $1.75 million
  • Price/SqFt: $213 
  • Asking cap rate: 6.5%
  • Days on market: 210
  • Total listings on Crexi: 248

Sales Comps (past 12 months)

  • Median sold price: $1.44 million
  • Sold price/SqFt: $167
  • Total sales volume: $654 million
  • Sold cap rate: 6.2%
  • Median SqFt sold/transaction: 7,420 SF
  • Days on market (median): 104

5. Denver

downtown Denver buildings with brick stand against a cloudy and blue sky

The population of Denver has increased about 19% since 2010. Home to nearly 3 million, the area is attracting many tech companies. New offerings in the office market are also on the rise, with continued investment and development activity. Additionally, submarkets outside of downtown, such as Cherry Creek and Southeast Suburban, display relative stability with lower vacancy rates.

Although there is some volatility, leasing activity is extremely strong in Denver. A notable example of this demand is Xcel Energy’s recent full-building office lease at T3 RiNo. This move by a major U.S. electricity and natural gas company highlights the appeal of innovative districts like RiNo, further solidifying Denver as a market to watch for office investors in 2024.

Denver Office Market Overview

  • Inventory: 121,793,361 
  • Vacancy rate: 22.9%
  • Leasing activity: 5,633,485
  • Deliveries: 409,211 
  • Under construction: 2,040,844

Crexi Insights

For Lease (active)

  • Asking rate/SqFt (median): $25 per year
  • Median SqFt/listing: 1,453 SF
  • Days on market: 239
  • Total listings on Crexi: 1,681 spaces

For Sale (active)

  • Median asking price: $2.16 million
  • Price/SqFt: $315 
  • Asking cap rate: 5.8%
  • Days on market: 185
  • Total listings on Crexi: 104

Sales Comps (past 12 months)

  • Median sold price: $1.02 million
  • Sold price/SqFt: $265
  • Total sales volume: $225 million
  • Sold cap rate: 5.5%
  • Median SqFt sold/transaction: 4,394 SF
  • Days on market (median): 138

6. Charleston

Broad Street Panorama in Charleston, South Carolina, USA.

Charleston is the 3rd largest metro area in the state and the most populous city in South Carolina. With job growth of 0.6% year over year, the market is seeing an uptick in office use, with its pro-business government, world-class deepwater port, and highly-skilled local workforce driving a surge in new businesses. These factors contribute to Charleston’s office market outperforming the greater U.S. office market, boasting a vacancy rate below 10%.

Older, suburban product continues to show resilience, and there are signs of increased demand and development activity in the downtown area. The recent sale of a mixed-use office portfolio in Downtown Charleston increased investment activity by $49.5 million in a single quarter. 

As we move into 2024, Charleston’s diverse economy and growing number of businesses make it an exciting market for office investors.

Charleston Office Market Overview

  • Inventory: 21,221,778 
  • Vacancy rate: 9.9%
  • Leasing activity: 532,044
  • Deliveries: 254,340 
  • Under construction: 198,000

Crexi Insights

For Lease (active)

  • Asking rate/SqFt (median): $34 per year
  • Median SqFt/listing: 2,108 SF
  • Days on market: 268
  • Total listings on Crexi: 207 spaces

For Sale (active)

  • Median asking price: $1.44 million
  • Price/SqFt: $291 
  • Asking cap rate: 4.6%
  • Days on market: 216
  • Total listings on Crexi: 34

Sales Comps (past 12 months)

  • Median sold price: $749,000
  • Sold price/SqFt: $333
  • Total sales volume: $35.1 million
  • Sold cap rate: 6.4%
  • Median SqFt sold/transaction: 3,330 SF
  • Days on market (median): 326

7. Raleigh/Durham

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

The Raleigh-Durham area, part of the dynamic Research Triangle region, has been experiencing steady population and economic growth. Wake County, where Raleigh is located, grew by approximately 62 people per day and added 225,000 people over the last decade. 

A significant driver of office demand is the city’s flourishing tech sector, which continues to attract innovative companies to the region. This and the area’s strong educational and healthcare sectors contribute to a diverse economy that underpins the office market.

Major leases and key office projects are regularly being undertaken, signaling ongoing investment activity. The resilient office market, a diverse economy, and a thriving tech scene make Raleigh-Durham an exciting market for office investors to monitor closely.

Raleigh/ Durham Office Market Overview

  • Inventory: 55,340,708 
  • Vacancy rate: 21.8%
  • Leasing activity: 2,049,439
  • Deliveries: 923,295 
  • Under construction: 1,795,311

Crexi Insights

For Lease (active)

  • Asking rate/SqFt (median): $27 per year
  • Median SqFt/listing: 3,299 SF
  • Days on market: 237
  • Total listings on Crexi: 1,109 spaces

For Sale (active)

  • Median asking price: $1.28 million
  • Price/SqFt: $291 
  • Asking cap rate: 6.2%
  • Days on market: 107
  • Total listings on Crexi: 45

Sales Comps (past 12 months)

  • Median sold price: $518,000
  • Sold price/SqFt: $260
  • Total sales volume: $315 million
  • Sold cap rate: 5.9%
  • Median SqFt sold/transaction: 2,100 SF
  • Days on market (median): 84

8. Manhattan

New York City, NYC, USA

Manhattan is the most densely populated and geographically smallest of New York City’s five boroughs. It’s an iconic symbol of urban life, teeming with a unique blend of history, culture, and commerce. The Hudson River bounds the market to the west, the East River to the east, and Harlem to the north, covering a land area of 22.83 square miles. 

Over the past year, the Manhattan office market has shown signs of recovery as businesses are again looking for office space in the city. Various industries are driving demand for office space, with tech companies playing a significant role. 

For example, Microsoft sublet space to Ramp, a fintech startup, indicating the tech industry’s continued interest in Manhattan office spaces. Meanwhile, Bloomberg reported that Midtown Manhattan emerged from the pandemic as the hottest office market in America

Manhattan Office Market Overview

  • Inventory: 416,014,260 
  • Vacancy rate: 25.6%
  • Leasing activity: 17,077,757
  • Deliveries: 3,543,675 
  • Under construction: 6,176,352

Crexi Intelligence

For Lease (active)

  • Asking rate/SqFt (median): $49 per year
  • Median SqFt/listing: 646 SF
  • Days on market: 237
  • Total listings on Crexi: 4,410 spaces

For Sale (active)

  • Median asking price: $2.35 million
  • Price/SqFt: $819 
  • Asking cap rate: 4.8%
  • Days on market: 193
  • Total listings on Crexi: 171

Sales Comps (past 12 months)

  • Median sold price: $16.8 million
  • Sold price/SqFt: $471
  • Total sales volume: $5.78 billion
  • Sold cap rate: 5.6%
  • Median SqFt sold/transaction: 66,500 SF
  • Days on market (median): 188

9. Boise

downtown boise at sunset with views of skyline, trees, and a rich blue sky

Although Boise is one of the smallest markets on our list, the market boasts inspiring growth statistics. Over the past year, the population and job market have grown by over 2%, and median household income has increased about 8%. 

The city offers a high quality of life, a low cost of doing business, and a well-educated workforce, making it a hub for manufacturing, distribution, logistics, and construction-related industries.

Companies are expanding in Boise, further fueling demand for office space. However, it’s more than just local companies driving this growth. Coastal businesses also have set their sights on Boise, contributing to the city’s economic development. 

As these businesses grow in Boise, they will likely influence the office market’s trajectory. With a relatively low vacancy rate and a little product under construction, the expansion of diverse industries suggests a very positive future for the Boise office market.

Boise Office Market Overview

  • Inventory: 16,931,509 
  • Vacancy rate: 10.9%
  • Leasing activity: 584,802
  • Deliveries: 168,900 
  • Under construction: 158,940

Crexi Insights

For Lease (active)

  • Asking rate/SqFt (median): $19 per year
  • Median SqFt/listing: 2,195 SF
  • Days on market: 210
  • Total listings on Crexi: 398 spaces

For Sale (active)

  • Median asking price: $2.0 million
  • Price/SqFt: $237 
  • Asking cap rate: 6.0%
  • Days on market: 149
  • Total listings on Crexi: 38

Sales Comps (past 12 months)

  • Median sold price: $650,000
  • Sold price/SqFt: $198
  • Total sales volume: $2.85 million
  • Sold cap rate: 5.9%
  • Median SqFt sold/transaction: 3,703 SF
  • Days on market (median): 323

10. Austin

people paddle-boarding in austin's lady bird lake with Downtown Austin's skyline in the background

Since 2010, the population of the Austin metro area has increased by 33% and is now home to over 2.4 million. As the capital city of Texas, the market is a booming hub for technology and innovation. 

Known as Silicon Hills, Austin is home to a vibrant tech scene with major players like IBM, Dell, and Apple having a significant presence. The city’s thriving tech industry and robust startup ecosystem have been instrumental in driving demand for office space.

The Austin office market has shown resilience despite the pandemic-induced shift to remote work. While vacancies have increased, the city continues to attract businesses. For instance, companies like Oracle and Tesla have announced significant expansions in Austin, further fueling demand for office space. 

The trend of companies moving their operations from more expensive markets like Silicon Valley to Austin is expected to continue, contributing to the dynamism of the local office market.

Austin Office Market Overview

  • Inventory: 63,257,116 
  • Vacancy rate: 25.4%
  • Leasing activity: 2,280,969
  • Deliveries: 827,164 
  • Under construction: 6,008,933

Crexi Insights

For Lease (active)

  • Asking rate/SqFt (median): $29 per year
  • Median SqFt/listing: 2,206 SF
  • Days on market: 248
  • Total listings on Crexi: 2,117 spaces

For Sale (active)

  • Median asking price: $1.65 million
  • Price/SqFt: $416 
  • Asking cap rate: 6.0%
  • Days on market: 84
  • Total listings on Crexi: 125

Sales Comps (past 12 months)

  • Median sold price: $1.6 million
  • Sold price/SqFt: $458
  • Total sales volume: $303 million
  • Sold cap rate: 5.7%
  • Median SqFt sold/transaction: 5,492 SF
  • Days on market (median): 282

Ready to invest in office spaces? Find your next property on Crexi.

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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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