The Top 10 Cities to Start Your CRE Career in 2014

Whether you're just starting out like me, or considering finding a new job, location is everything. You want to embed yourself in a city that is both vibrant and economically booming, while keeping in mind that you will likely start a family in the city of your choosing when the time comes. Relocation is a huge decision, and you want to be sure you know what you're in for when you pick up and move.I'm a big proponent of hard work and believe success is achievable wherever you decide to settle down. With that being said, this list is a great place to start when seeking a new start. Work shouldn't be your end all be all, so while I talk about market trends related to your business success, I know you want to be in a place that has plenty to offer outside the office. Read on to see which cities made my Top 10 list!

1. Austin, Texas

The liberal heart of Texas is the most desirable spot to ignite your career in commercial real estate. Austin is rapidly becoming the entrepreneurial mecca of the South, as numerous startups sprout up daily. This brings great energy to the city and means there's always someone out there looking for your services. "Hook 'em" up with a stylish modern work space, and you could jump on board the next big tech giant.

From a world renown music scene to the campus at UT, Austin is blessed with a plethora of entertainment opportunities. Stop by one of the many food trucks or sit down at a 5 star restaurant before enjoying the lively night life.

Austin has become a hotspot for travel in recent years, and with so much to offer, that's no surprise. Since the peak and subsequent valley in the commercial real estate sector, the market has shown strong, consistent growth over the last few years, making the home of the longhorns the well rounded #1 city on the list.

Market Trends (Courtesy: LoopNet)

2. Washington, D.C.

I had a hard time leaving our nation's capital off the top of this list. As far as CRE goes, there are a lot of people looking to invest in a limited amount of real estate. This means brokers get lots of business and receive a premium price for their services.

No building can be more than 130ft tall within the District of Columbia per the Height of Buildings Act of 1910, so the increasing demand for space can not be matched by an increased supply, which inevitably drives the prices skyward. If you're a broker in commercial real estate, that's what you like to hear.

Washington D.C. has history, sports, low unemployment, education, and of course, politics. It's a fast paced city with a welcoming population and plenty to offer. Check out the various attractions around the city or spend an afternoon strolling the national mall.

Vacancy numbers are up slightly in the last few months, which can be credited to the recent increase in constructed properties, many of which are upgrades from Class B/C to Class A space. Furthermore, rental prices continue to rise at a current price of $50.67 per square foot.

There is a lot of wealth to go around in the extended D.C. area, meaning a good deal of opportunity in many niche markets. If you can handle the political battle ground that it is, Washington is a great place to get your start.

Market Report (Courtesy: Colliers International)

3. Denver, Colorado

Migration into the Denver area has been among the strongest in the U.S. over the past five years. There has been a recent influx of young professionals in the area, and while living costs are rising, well paying jobs are there for the taking. Denver's convenient location makes it a distribution hub for the Western U.S. while growth in the technology and telecommunications industries stimulate the economy as well.

The mile high city has just been named the 4th best place for business and careers by Forbes, and is poised to continue moving up the list with more and more educated professionals coming in each year. Known for being an outdoors-man's paradise with an active population, Colorado's capital city has a unique culture with something for everyone.

Spend your weekends visiting the many historical museums and performing arts centers, go to a game of one of the 5 professional sports teams, explore the rocky mountains, or check out the lower downtown area, known as LoDo, to fulfill all your ambitions in terms of a night out. With art galleries, hip restaurants, bars and clubs, surely you'll be able to find something to tickle your fancy.

As far as the real estate industry goes, the spike in vacancy rates brought about by the financial crisis has rapidly vanished, resulting in a steep rise in asking rents. With not much available for sale right now, demand has increased, creating an opportunity for developers to fill that demand. High asking rent means less risk for a developer and provides a significant amount of passive income. With plenty of opportunity in a market on the rise, Denver comes in at a sound #3 on the list.

Market Report (Courtesy: LoopNet)

4. New York, New York

No need to say too much in order to justify this pick. At #4 on the list, the big apple is full of excitement and opportunity for those seeking a new start in commercial real estate.

The fact that the subways run 24 hours a day, 7 days a week truly makes New York "The City That Never Sleeps." See a Broadway Musical, go to a Yankees game, take a stroll down Wall Street or visit an international landmark. Simply put, New York has it all.

New York is another example of limited space in a popular area, where in this case, the only place to go is up for incoming developers, both literally and figuratively. New York is the international business center of the world, which creates plentiful opportunities when it comes to commercial real estate deals and transactions.

Total rent is consistently increasing and landlords are making money again since the downturn of the economy, with net rent increasing 5.6% in 2013. Soaring prices in a market dominated by individuals of extreme wealth, aided by an influx of foreign investment makes New York a desirable location for your career in CRE. It's safe to say New York will be a mainstay on this list for years to come.

Market Report - Manhattan (Courtesy: Savills Studley)

Manhattan Capital Markets Report (Courtesy: CBRE)

5. San Francisco, California

The San Francisco Bay Area is a gorgeous place and a great spot to kick off a career in commercial real estate. In a city that Forbes ranked the 15th top global financial center, San Fran has a quaintness about it that's hard to find in an international giant.

The Tech scene has created a buzz around the city that continues to grow. These fast growing companies are moving towards open, illuminated spaces with room for expansion, which is always fun to be a part of.

The number of available listings have dropped off severely in the past year or so, while these tech companies continue to grow their own presence, paving the way for today's start ups of the future.

San Francisco has a long lasting office market that needs continuous support. Now, in the age of technology in the bay area, strong companies are starting out, providing a supplement for the real estate market.

Check out this article from Biz Journals related to recent transactions for Tech giants such as Dropox, Salesforce, and LinkedIn.

Market Report

6. Nashville, Tennessee

If you've never been to Nashville, you need to put it on your short list of places to check out. Known as Music City USA, Nashville's music scene is overwhelmingly contagious. Head over to The Country Music Hall of Fame, the Ryman, or The Grand Ole Opry for a family friendly night on the town.

Finding yourself surrounded by southern food is never a bad thing, and in Nashville, the southern hospitality comes with it. What sticks out to me is the established sense of community felt upon arrival, making it a big winner when deciding on your spot to settle down.

As far as the real estate market goes, now is the most opportune time in decades to get in. After high vacancy rates hit their peak a few years ago, developments slowed dramatically, which has revitalized the market, making Nashville one of the most attractive real estate markets out there.

Nashville's most expensive office building fills up

The Batman Building

Market Report

7. Boston, Massachusetts

With more than 100 colleges and universities in the Greater Boston Area, made up of over 250,000 students, Boston is a city with vast knowledge and innovation. It's home to a young population which makes for a lively atmosphere as a result. Speaking of lively, Boston has the reputation of being one of, if not the best sports cities in the world. I know that's hard for some to admit, me being no exception, but with 8 championships in the 4 major pro sports this millennium, credit must be given where deserved.

With the CRE market recovering slower than many of the other cities on this list, there is room for growth if you get in now. Investment sales are rising, which translates to big pay days for brokers in commercial real estate. Another selling point is in the development of medical offices that has seen steady growth since the downturn of the economy.

Market Report

8. Houston, Texas

The country's #1 job creator by far and home to 26 Fortune 500 Companies, Houston has quickly become what Business Insider calls an economic juggernaut. With a fury of development in the medical sector, Houston is a national powerhouse when it comes to cancer research. In fact, the Texas Medical Center is the single largest employer in Houston, operating in a complex that spans larger than downtown Dallas.

Combine that with the lasting oil and gas industry Houston supports, and you can imagine why the unemployment rate has consistently been about a percentage point lower than the national average. Further, the housing market has remained inexpensive, which is only one contributing factor in determining the low cost of living numbers. Adjusting for cost of living, Houston actually has the highest average earnings in the country (Paycheck Power).

As you can imagine, a happy population with money to spend makes up a strong market for commercial real estate. The office market construction pipeline recently topped 17.4M SF, 5.6M SF of new inventory has been delivered in the first half of 2014 in industrial space, and retail market vacancy rates are at a record low, at around 6.3%. It's a pretty good time to get into the Houston market if you ask me.

Market Report

9. Charlotte, North Carolina

While Charlotte may seem like an outsider on this list, it makes the top 10 for its attractiveness to young professionals. It is quickly becoming a hotspot for recent graduates, and while the city has generally been known for its banking industry and NASCAR races, it has grown to be much more.

Sports fans now have hometown teams to root for in the Carolina Panthers and the Charlotte Bobcats to compliment the Charlotte Motor Speedway and the NASCAR Hall of Fame. Otherwise, float down the man made rapids at the US National Whitewater Center or get some Carolina style BBQ.

The Queen City has been the 5th fastest growing city in the last 3 years, and asking rents have reflected that pace, from $18.50 to just over $20.00 per SF, increasing in each of the last four quarters. The demand is there for both Class A and Class B office space, which contributes to a YTD absorption of 674,868 square feet.

Market Report (Courtesy: Cassidy Turley)

10. Dallas, Texas

Dallas has hosted the Texas State Fair since 1886 and is home to one of the most expensive sports entertainment facilities in the world in Cowboys' Stadium, which cost Jerry Jones over $1.15 billion to construct.

Mark Cuban hasn't reached that level quite yet, but don't be surprised when the Dallas Mavericks President makes his next big move.

While the banking, electronics, fashion, and motion pictures industries have thrived in recent years, numerous new skyscrapers are under construction or being planned in the city after almost two decades of slow growth. If you're looking to get in on some mega deals, take a look at Big D.

Market Report (Courtesy: Jones Lang LaSalle)

What do you think of this list? Share your area of expertise or your top cities for CRE in the comments below!