Commercial Real Estate News / General CRE / Syracuse, NY vs. Buffalo, NY: Which Is Better for Businesses?

Syracuse, NY vs. Buffalo, NY: Which Is Better for Businesses?

Published: 05-26-22 Category: General CRE

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

In cities across the country, businesses are choosing to settle outside of major metropolitan areas.

Smaller cities and towns are working to attract investment by touting their benefits as up-and-coming locations.

If you’re considering settling in one of these smaller cities, which is better for your business: Buffalo or Syracuse?

No matter your circumstances, it helps to know the facts about both of these locations.

Here is some useful information about both cities so that you can make the best choice for your business.

Population Comparisons

Populations are as follows: 253,793 people live in Buffalo, and 141,073 people live in Syracuse.

If your business is going to be servicing the general public, this is a considerable difference.

In a city of Buffalo’s size, you’re likely to have more potential customers than in Syracuse.

However, while Buffalo’s population is larger, it might not necessarily be better in terms of your market. If you want to target a specific audience, you may do better in a smaller city.

For example, if your business is going to be serving children or the elderly, the Syracuse area could be better.

Average Demographics

In Syracuse, the population demographics in 2022 were:

Median age 30.6 years old.
52.8% of the population is female.
15.9% of the population is between the ages of 25 to 34.
50.5% of the population identifies as White.
27.8% of the population identifies as Black.
9.1% of the population identifies as Hispanic.

In Buffalo, the population demographics in 2022 were:

Median age 32.8 years old.
52.3% of the population is female.
17.6% of the population is between the ages of 25 to 34.
44% of the population identifies as White.
36.3% of the population identifies as Black.
11.3% of the population identifies as Hispanic.

In Buffalo, residents are a bit older than the residents of Syracuse.

Average Household Income

The average household income in Buffalo is $55,305.

The average household income in Syracuse is $55,573.

Commercial Real Estate Comparisons

Commercial real estate is another area where these two cities are likely to differ in terms of your business’s needs.

Buffalo has a higher amount of vacant commercial property than Syracuse.

The industrial and retail markets in this city are stronger overall, which may be the deciding factor for you.

Average Commercial Rents

The average cost of commercial rent in Syracuse is:

Class A Office Space: $23.18 per square foot.
Class B Office Space: $17.99 per square foot.
Class C Office Space: $15.68 per square foot.

The average cost of commercial rent in Buffalo is:

Class A Office Space: $23.39 per square foot.
Class B Office Space: $16.52 per square foot.
Class C Office Space: $15.40 per square foot.

The costs of leasing commercial real estate in Syracuse are nearly identical to leasing commercial real estate in Buffalo.

Commercial Vacancy Rates

The commercial vacancy rate in Syracuse is 8.72%.

The commercial vacancy rate in Buffalo is 13.15%.

CRE Market Outlook for 2022

In Buffalo and Syracuse, you can find plenty of commercial real estate opportunities. However, the population in both cities is in decline.

The population hasn’t significantly grown in the past couple of decades, but many older properties have been converted into office space.

Commercial Activity Comparisons

The business environment in both cities depends on the industry you’re in. If you’re a manufacturer, Buffalo may be better for your needs.

The low cost of doing business combined with the strong manufacturing market could help your bottom line.

On the other hand, if you are a retailer or a service provider, Syracuse’s advantages may outweigh those of Buffalo.

Retail: In-Person Shopping Versus Online Shopping

Syracuse has seen a decline in the size of its shopping areas, but it still manages to draw a large number of shoppers.

In addition, the downtown area is filled with shops and restaurants that offer unique services and products.

Buffalo’s shopping options aren’t as robust. The city has seen a drop in the number of retailers over the years, which makes its shopping area seem smaller.

It also lacks unique attractions that would make it an appealing destination for shoppers.

Overall, Syracuse has more to offer in terms of local shopping venues than Buffalo.

If you want to offer services or products that are only available online, however, Buffalo may be the better option for your business for other reasons.

Industrial: Warehouse Storage Activity

Buffalo’s industrial market is vibrant, which could be an enticing factor for your business. Overall, Buffalo gives you more options than Syracuse when it comes to warehouse storage.

If you’re looking for a manufacturing location or a distribution center, Buffalo might be the better choice.

Office: Office Space Activity

Syracuse and Buffalo are both similar when it comes to office space; however, Syracuse has a slightly higher amount of office space for lease.

If you’re in the market for an office, it might be a good idea to check out both cities’ options.

Multifamily: Vacancy Rates & Leasing Activity

In Syracuse and Buffalo, you’ll have similar options when it comes to large apartments.

Of course, the prices vary from property to property; however, the difference between these choices is quite small. Small multifamily apartment complexes are also common in both locations.

Deciding Which Location Is Right for Your Business

Syracuse has seen a decline in its population over the past 20 years, but the city still manages to attract plenty of businesses.

If you’re looking for a small-town location with a thriving business atmosphere and plenty of commercial real estate options, Syracuse may be your best bet.

If you’re considering Buffalo, you have a number of options that can make this location a good fit for your business.

Smaller cities with vibrant industries and competitive costs of doing business could benefit your bottom line.

No matter which location you choose, New York’s smaller markets often offer advantages that make them an ideal place for businesses to flourish.

The state of New York has many thriving small- to mid-size cities that provide opportunities for new businesses and are known for their low cost of doing business and high-quality real estate market.