Investors target gateway markets for their proven track record of resilience through economic cycles, a diversified bench of active lenders and investors, and heightened exit liquidity.
Guide
24 October 2024
What’s driving gateway markets in 2024?
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Gateway markets offer real estate investors the potential for steady long-term investment returns thanks to the size and diversification of their economic drivers. But before you decide to invest, you need a comprehensive understanding of the trends driving the nation’s top gateway markets.
We’ve gathered the most relevant insights across apartments, office, industrial and retail to give you valuable perspective on top gateway markets Chicago, San Francisco, and Los Angeles.
Here are some highlights:
- Chicago’s office market is seeing in-person work attendance rates that are six percentage points higher than the average comprised of the country’s 10 largest metros. This elevated office foot traffic has captured the attention of private capital investors.
- San Francisco is seeing strong leasing demand from industrial tenants looking to right-size their footprints. The city and broader Bay Area provide unique advantages for tenants looking to tap into advanced manufacturing infrastructure and skilled labor pools.
- Rebounding employment helped keep Los Angeles retail vacancies as low as 6% and push retail rents to near-record highs. Recent retail investment activity reflects substantial long-term confidence in this sector.