As commercial real estate investors seek higher returns amid a competitive landscape, the spotlight is shifting from traditional urban powerhouses like Dallas, Atlanta, and Chicago toward smaller yet rapidly expanding markets. These secondary and tertiary markets offer untapped opportunities fueled by demographic shifts, robust local economies, and substantial infrastructure investments. For investors and commercial property owners, understanding these emerging hotspots can significantly enhance portfolio performance.
Why Invest in Emerging CRE Markets?
Emerging CRE markets offer unique advantages that major metros often can’t:
- Lower acquisition costs and higher capitalization rates
- Stronger yields due to reduced competition
- Enhanced growth potential driven by localized economic expansion
- Attractive incentives from local and state governments
According to the Urban Land Institute’s Emerging Trends Report (2025), nearly 60% of surveyed investors are now exploring these secondary markets to maximize value. Below we will shed some light on the reasons for the trend and evidence that it will likely continue.
Southwest Spotlight: 5 High-Growth CRE Markets
1. Celina, TX
Celina has rapidly transformed from a rural town into a burgeoning suburban hub. Recognized as one of the fastest-growing cities in the U.S., its population surged from approximately 16,000 in 2019 to over 43,000 in 2023, with forecasts predicting over 200,000 residents by 2035.
- Infrastructure Expansion: The Dallas North Tollway extension enhances connectivity, attracting businesses and residents.
- Digital Advancements: Designated as Texas’s first gigabit city, offering high-speed internet to support tech-driven enterprises.
- Commercial Growth: A surge in retail and mixed-use developments caters to the increasing population.
2. Maricopa, AZ
Located near Phoenix, Maricopa has experienced significant growth, with its population increasing by over 20% since 2020.
- Strategic Location: Proximity to major transportation corridors and affordable land prices make it attractive for businesses.
- Residential Boom: Robust housing development fuels demand for commercial services.
- Economic Initiatives: Active policies promote business relocations and investments.
3. Rio Rancho, NM
Adjacent to Albuquerque, Rio Rancho is rapidly becoming a commercial magnet. Notable developments include significant tech and manufacturing industry presence, including Intel’s sizable investment.
- Tech Hub: Home to Intel’s Fab 9 factory, a $3.5 billion investment enhancing semiconductor production.
- Population Growth: Affordable housing and employment opportunities attract residents.
- Business Parks: Developments like Los Diamantes Business Park offer prime commercial lots.
4. Broken Arrow, OK
Just outside Tulsa, Broken Arrow has seen consistent commercial growth due to rapid expansion of healthcare and manufacturing sectors.
- Manufacturing Hub: Ranked 3rd in Oklahoma for manufacturing concentration.
- Economic Development: Initiatives like “Advance Broken Arrow” aim to diversify the economic base.
- Cultural Investments: Projects like the Sunset Amphitheater enhance community engagement.
5. Las Cruces, NM
Las Cruces, New Mexico’s second-largest city, is experiencing steady growth, driven by its strategic location and economic initiatives.
- Trade Opportunities: Proximity to major highways and the U.S.-Mexico border enhances trade.
- Educational Influence: Home to New Mexico State University, contributing to a skilled workforce.
- Downtown Revitalization: Investments in downtown areas attract new businesses.
National Rising Stars: 5 Emerging CRE Markets
1. Huntsville, AL
Huntsville’s commercial property market is booming thanks to its diversified economy, anchored by NASA’s Marshall Space Flight Center and Redstone Arsenal.
- Population Growth: The metro area reached 913,977 in 2024, ranking 68th nationally.
- Tech and Aerospace: Significant presence of tech and aerospace sectors fuels office and retail expansions.
- Quality of Life: Ranked among the best places to live in America.
2. Boise, ID
Boise has become a magnet for tech migration from expensive coastal markets. It was named the fastest-growing city in America in 2022 by Forbes.
- Tech Investments: Micron’s $15 billion facility is expected to generate thousands of jobs.
- Startup Culture: A burgeoning startup scene attracts young professionals.
- Affordable Living: Lower cost of living compared to coastal tech hubs.
3. Greenville, SC
Greenville has gained attention for its vibrant economy, diverse industries, and growing population.
- Manufacturing Growth: Home to major employers like Hyster-Yale and Thermo Fisher Scientific.
- International Investments: Companies like Boviet Solar and Nipro Medical Corporation are establishing U.S. operations here.
- Educational Institutions: East Carolina University contributes to a skilled workforce.
4. Des Moines, IA
Des Moines offers attractive opportunities driven by financial services, insurance, and agriculture sectors.
- Financial Hub: Consistent employment growth in finance and insurance industries.
- Quality of Life: High rankings attract workforce migrations.
- Public-Private Partnerships: Robust collaborations drive city redevelopment.
5. Fayetteville, AR
Home to the University of Arkansas, Fayetteville is experiencing growth in education, healthcare, and retail sectors.
- Tourism Investments: Surge in hotel development to meet increasing demand.
- Educational Influence: University events drive economic activity.
- Cultural Scene: Vibrant arts and culture enhance livability.
Investment Strategies for Emerging CRE Markets
Successful entry into emerging markets requires strategic considerations:
- Local Market Expertise: Understanding local zoning, economic incentives, and growth corridors.
- Risk Management: Diversifying investments and understanding cyclical economic vulnerabilities.
- Partnerships: Collaborating with experienced local partners and advisory services to mitigate risks.
According to CBRE’s 2025 U.S. Real Estate Market Outlook, collaboration with seasoned local advisory firms significantly improves investors’ returns in these markets. That’s where the Team at LPA can help.
LPA’s Role in Navigating Emerging CRE Opportunities
At LPA, we specialize in providing strategic CRE appraisal and advisory services, enabling investors to capitalize on emerging opportunities with confidence, no matter what the market size. However, our expertise in rapidly expanding markets across the Southwest and beyond ensures our clients can make informed decisions supported by in-depth market analysis and valuation prowess.
We offer:
- Tailored Appraisal and Advisory Services: Customized solutions to meet specific investment goals and client needs, coupled with valuation expertise.
- In-Depth Market Insights: Comprehensive analysis of local market trends, opportunities and robust data by our Research Team.
- Commitment to Excellence: Ensuring accuracy and timeliness of our services, guaranteed.
In summary, emerging CRE markets beyond traditional big cities represent significant growth opportunities for proactive investors. By leveraging strategic market insights, expert advisory services, and robust investment strategies, CRE stakeholders can effectively capitalize on these burgeoning hotspots and LPA is here to help navigate the opportunities no matter where they may be.
To discuss opportunities in these emerging markets, the existing markets we serve or learn more about our commercial real estate appraisal services, contact LPA.
