Commercial real estate industries usually thrive in cities where trade and shipping industries are successfully active. These are cities that are seen as hubs for national and international investment. They usually have bustling downtown areas and good public transportation systems, so people can find alternatives to driving. Commercial real estate hotspots also entail strong residential housing markets. As the commercial sector grows and jobs become more available, people tend to crowd around cities and the value of single-family homes in the area tends to go up. Keep these factors in mind when looking for an ideal place in which to make a commercial real estate investment.

Seattle, WA

In the U.S., Seattle, Washington, is at the top of most lists as the number one city for commercial real estate investment. It has a diversified market and is a base for many leading businesses. Boeing has a strong presence in the city, employing over 4,517 Seattle workers and contributing a substantial amount to the local economy. The University of Washington in Seattle is a center for the biotech industry, and the Seattle port is one of the most active and profitable centers of international shipping and trade.

So despite suffering the loss of Washington Mutual and the severe downsizing of Starbucks, Seattle has stayed at the top, being host to companies, like Microsoft, that are still going strong. There is a low apartment and retail property vacancy rate, so there’s no danger of oversupply yet.

San Francisco, CA

San Francisco is another hot spot for commercial real estate. Since the days of the California Gold Rush, it has been an important center of business. Today, the Bay Area’s land-locked harbors account for almost 30 percent of the West Coast trade. Shipments from all over the world flow through the city’s ports every day.

The San Francisco International Airport is the ninth largest in the country. The city has also recently become one of the biggest centers for technological innovation, and it hosts some of the country’s largest banks, like the Pacific Exchange. Post-World-War-II San Francisco saw a boom in the defense industries, which are still active in the city today. NASA also has several research facilities in the Bay Area. San Francisco has a huge tourist industry, which generates $6 billion a year. The city is also home to Levi Strauss, the biggest apparel maker in the world. Its dynamic economy and pedestrian-friendly city plan, with its excellent public transit system, make San Francisco one the best places to invest in California commercial real estate today.

Washington, D.C.

In early 2009, Washington, D.C. was named by various commercial real estate groups as the best place for commercial real estate investment in the country. D.C. is set to benefit greatly from the economic recovery plan. The federal government is the largest consumer of technological products. Thus, Washington’s economy is stimulated by steady research and development funding for tech industries by the U.S. government.  The growth of telecommunications, information and computer industries have made the city a strong hot spot for commercial real estate.

Other cities that stand amongst the top ten for commercial real estate investment in the U.S. include Portland, Ore., with its growing population and dynamic culture; Los Angeles, Austin, Texas, and Boston, Mass.