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5 More Affordable Cities to Rent Commercial Real Estate

Published: 06-21-22 Category: Leasing/Renting

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.

Article Highlights:

It is critical to look at a city’s past to determine its future. A rough past could mean future opportunities or potential failure.
Pay attention to the cost of living in each city. This directly contributes to its profitability and your odds of a successful investment.
Many cities on this list are primed to explode in size and popularity, making now the best time to invest.
Each city is home to diverse industries. Look for commercial investment opportunities that align with the city’s existing industrial strengths.
Consider the costs of upkeep and maintenance in each city. An older structure will always be cheaper, but if it hasn’t been well maintained your investment could be wasted.

Commercial real estate can be a great investment, but it can also be expensive.

If you are looking for a cheap location for leasing opportunities, then it is important to know what the most affordable cities are.

Always remember to do your research before making any decisions.

Here are more of our top picks for some of the most affordable cities to rent commercial real estate.

#1 – Toledo, OH: A Gem in the Great Lakes Area

Important Data:

Pricing: $11.93 per square foot average annual rent for office space.
Population: Toledo has a population of 275,116 people as of 2020.
Population Ranking: Toledo is the 85th most populous city in the United States.
Cost of living index: Toledo’s cost of living index is 87.5 compared to the national average.
Biggest City Industries: Health care, manufacturing, and automotive.

Toledo is a great city for commercial real estate investment. According to a recent study by Wallethub, Toledo has the lowest average annual rent for office space in the country at $11.93 per square foot.

When you compare that to the other end of the spectrum, like San Francisco for example, you are saving a TON compared to their $80.22 per square foot office space average.

Toledo also has a lot to offer investors. The city is home to many businesses and industries, as well as a growing population.

If you are interested in redevelopment, there are a lot of properties that could be turned into something new and exciting. If you are looking for a city with potential, then Toledo is a great option.

City Population Stats

Toledo is a city located in the northwestern part of Ohio.

The city has a long history, dating back to the early 19th century when it was founded as a port city on the Great Lakes.

Today, Toledo is the 85th most populous city in the United States with a population of 283,003 people.

Biggest City Industries

The city is home to a number of large businesses and industries, including the auto industry. Toledo is also known for its art scene and for its college and university campuses.

The University of Toledo is located in the city, as well as the Toledo Museum of Art. Toledo is a diverse and vibrant city that has something to offer for everyone.

Toledo’s economy is founded on a diverse mix of industries, from health care to manufacturing.

However, it is the city’s manufacturing sector that truly sets it apart. Making up about one-fifth of the city’s economic base, manufacturing plays a vital role in supporting Toledo’s businesses and families.

The city’s manufacturers produce a wide range of products, from auto parts to medical devices.

And they export their goods all over the world, bringing much-needed jobs and revenue to Toledo. The city’s strong manufacturing sector is one of the reasons why Toledo continues to thrive, even as other cities struggle.

Why Is This Area So Affordable?

The commercial real estate investment market in Toledo is very affordable because the city has not yet been discovered by investors.

The city offers a lot of potential for redevelopment and growth. However, many investors are not aware of this potential yet.

As the city continues to grow and develop, commercial real estate investments will become more expensive to make.

This means that now is a great time to invest in Toledo. The sooner you invest, the more profit you will make as the city grows.

#2 – Colorado Springs, CO: Rocky Mountain Gold (for Investors)

Important Data:

Pricing: $15.00 per square foot average annual rent for office space.
Population: Colorado Springs has a population of 471,686 people as of 2020.
Population Ranking: Colorado Springs is the 39th most populous city in the United States according to World Population Review.
Cost of living index: Colorado Springs’ cost of living index is 102.2 compared to the national average according to AdvisorSmith Solutions.
Biggest City Industries: Defense, healthcare, and aerospace.

Commercial real estate investment opportunities in Colorado Springs abound. The city has a lot to offer investors including its thriving business environment which is primed to explode in coming years.

City Population Stats

According to the 2020 Census, Colorado Springs is the 39th most populous city in the United States, with a population of 471,686 people.

This makes it the largest city in Colorado and the second-largest city in the Rocky Mountain region, behind only Denver.

A Highlight of Colorado Springs History

The city is located at the base of one of the most famous mountain ranges in the world, the Rocky Mountains, and is home to many iconic attractions, such as Pikes Peak and the Garden of the Gods.

Colorado Springs has a long history dating back to its founding as a gold-mining town in 1871. Since then, it has undergone many changes, but its unique character and natural beauty have remained constant.

Today, Colorado Springs is a thriving metropolis with something to offer everyone. Whether you’re looking for outdoor adventures or urban amenities, you’ll find it all here.

Why Is This Area So Affordable?

There are a few reasons why the Colorado Springs office market is so affordable right now.

The vacancy rate is relatively high. This means that there is a lot of space available, which gives tenants more bargaining power. Quantum Commercial Group reported office vacancy rate jumped to 9% at the end of 2021.
Rents have been falling in recent quarters. This is likely due to the high vacancy rate and the weak economy. As a result, tenants can get a good deal on office space in Colorado Springs right now.
The market is expected to recover in the next few years. This means that prices are likely to go up, so its a good time to lock in a low rate now.

If you are looking for a city with potential, then Colorado Springs is a great option. Over the coming years, it expects massive population and industry growth.

#3 – Wichita, KS: Redeveloping Into a Digital Job Haven

Important Data:

Pricing: $16.67 per square foot average annual rent for office space.
Population: Wichita has a population of 390,566 people as of 2020.
Population Ranking: Wichita is the 51st most populous city in the United States according to World Population Review.
Cost of living index: Wichita’s cost of living index is 86.8 compared to the national average according to AdvisorSmith Solutions.
Biggest City Industries: Manufacturing, aerospace, and agriculture.

You’ll find even more affordable investment opportunities with commercial real estate in Wichita. According to a recent study by Wallethub, Wichita has the third-lowest average annual rent for office space at $13.03 per square foot.

Wichita also has a lot to offer investors. The city is home to many businesses and industries, as well as a growing population and many opportunities for redevelopment in Wichita.

This means that there are a lot of properties that could be turned into something new and exciting.

City Population Stats

Though it may be the 51st most populous city in the United States, Wichita has a lot to offer potential residents.

The cost of living index is 86.8, which is lower than the national average, making it a more affordable place to live. In addition, Wichita is home to a variety of cultural attractions, including museums, art galleries, and musical venues.

There are also several parks and recreation areas, providing ample opportunities for outdoor activities.

With its low cost of living and wide range of activities, Wichita is an attractive option for those looking for a new place to call home.

Biggest City Industries

According to the Brookings Institution, Wichita ranks #1 in the growth rate of digital services jobs compared to the 100 most populous U.S. metro areas.

In today’s economy, digital services jobs are some of the most sought-after positions.

Companies in a wide range of industries are looking for employees with skills in web development, graphic design, and social media.

As a result, cities like Wichita that can attract and retain these workers are well-positioned for economic growth.

Wichita is likely to succeed in this area due in part to the city’s strong manufacturing base, which has created a demand for workers with digital skills.

In addition, Wichita has been investing in programs to train workers for these kinds of jobs. As a result, the city is well-positioned to continue its economic growth in the years to come.

Why Is This Area So Affordable?

Wichita’s affordability is a result of many factors, including low cap rates to combat construction costs, a diverse economy, and a thriving job market.

Wichita is home to many different industries, including manufacturing, healthcare, and education. This diversity helps to offset any downturns in one sector with growth in another.

Meanwhile, Wichita’s strong job market also helps to keep the city affordable. The unemployment rate in Wichita is below the national average, and many residents enjoy good-paying jobs with benefits.

As a result, there are more people with disposable income who can afford to buy houses and apartments. All of these factors combine to make Wichita a very affordable place to live.

#4 – Fort Wayne, IN: Affordability and Opportunity in the Rust Belt

Important Data:

Pricing: $16.67 per square foot average annual rent for office space.
Population: Fort Wayne has a population of 268,378 people as of 2020.
Population Ranking: Fort Wayne is the 77th most populous city in the United States according to World Population Review.
Cost of living index: Fort Wayne’s cost of living index is 86.8 compared to the national average according to AdvisorSmith Solutions.
Biggest City Industries: Manufacturing, healthcare (medical device and technology), and automotive.

Fort Wayne commercial real estate is another excellent candidate for investment due to the area’s quickly growing population and economy.

City Population Stats

Fort Wayne is a rapidly growing city. As of 2020, it is the 77th most populous city in the country with a population of 268,378 people.

The U.S. Census Bureau has ranked Fort Wayne as the #2 fastest-growing metro in the Great Lakes region.

This growth is due in part to the city’s strong economy and its location in the Midwest, which is attracted many young professionals and families.

Fort Wayne is also a major cultural center, home to art museums, theaters, and a variety of restaurants and bars.

The city’s vibrant downtown area is a popular destination for shopping, dining, and nightlife.

With its strong economy and expanding population, Fort Wayne is poised to continue its growth into the future.

Fort Wayne’s Cost of Living

According to the most recent cost of living index, Fort Wayne is a relatively affordable place to live. The cost of living index in Fort Wayne is 86.8, which is slightly lower than the national average.

This means that residents of Fort Wayne can expect to pay slightly less for essential goods and services than the average American.

However, it’s important to keep in mind that the cost of living can vary significantly from one part of the city to another. In general, downtown neighborhoods tend to be more expensive than outlying areas.

So, if you’re looking for a bargain, it’s worth taking the time to explore all your options before making a final decision.

Why Is This Area So Affordable?

In 2020, Fort Wayne was the second most affordable city to live in according to U.S. News & World Report.

Located in the heart of the Rust Belt region of the United States, this region was once known for its booming manufacturing industries.

However, in the 1980s, many factories began to close their doors, leaving cities like Fort Wayne struggling to find new sources of economic growth.

Today, advanced manufacturing is playing a key role in revitalizing the Rust Belt region. Major manufacturers like General Motors and BAE Systems have made significant investments in the economy of Fort Wayne.

These investments have helped to create new jobs and spur economic development. The city is also undergoing a long-term revitalization process, which is helping to attract new businesses and residents.

As a result, Fort Wayne is beginning to resurgence as a key player in the Rust Belt region.

#5 – Stockton, CA: The “Last Bastion of Housing Affordability” in California

Important Data:

Pricing: $16.73 per square foot average annual rent for office space.
Population: Stockton has a population of 311,103 people as of 2020.
Population Ranking: Stockton is the 63rd most populous city in the United States according to World Population Review.
Cost of living index: Stockton’s cost of living index is 113.6 compared to the national average according to AdvisorSmith Solutions.
Biggest City Industries: Healthcare, agriculture, and construction.

Due to its growing population and economy, investors may find affordable investment opportunities in Stockton commercial real estate.

There are many old properties in the city that could be turned into something new and exciting. If you are looking for a city with potential, then Stockton is a great option.

City Population Stats

With a population of 311,103 people as of 2020, Stockton is the 63rd most populous city in the United States.

The city is located in Central Valley, California, and is home to a diverse population. The area was first populated by Native Americans, and then later by settlers from Mexico and Europe.

Today, the city is a melting pot of cultures, with residents from all over the world. Stockton is known for its vibrant downtown area, which features a variety of shops and restaurants.

The city is also home to a number of museums and art galleries. In recent years, Stockton has been working to revitalize its economy, and the city has seen a resurgence in tourism and business growth.

Stockton City Growth

Stockton has become increasingly popular as a place to live, work, and play. And it’s no wonder why: The city has a lot to offer.

Stockton is home to a number of exciting and eclectic events and attractions. The downtown area is especially vibrant, with its mix of shops, restaurants, and bars.
There’s a growing arts scene in the city, with several art galleries and performance venues.
There are plenty of outdoor activities to enjoy year-round thanks to the city’s location—right on the San Francisco Bay.

With all of these factors combined, it’s easy to see why the city of Stockton is becoming increasingly popular.

Biggest City Industries

According to the Bureau of Labor Statistics, the most popular profession in Stockton is in Transportation and Material Moving Occupations. More than 41,000 people listed this as their profession.

This is likely due to the city’s location; Stockton is situated near the intersection of several major highways.

The transportation and logistics industry is vital to the city’s economy, and many residents are employed in this sector.

The popularity of this profession also reflects the city’s diversity; many of Stockton’s residents come from immigrant backgrounds, and many families have roots in agriculture or other industries that require manual labor.

Whatever the reason, it’s obvious that Stockton is a community that values hard work and practical skills.

Why Is This Area So Affordable?

The Stockton Real Estate Forum called Stockton the “Last Bastion of Housing Affordability in California.”

They claim that investing affordability is being driven by millennial migration and that many millennials don’t have the resources to care about things like "nice schools and hip neighborhoods if they can’t afford to live in them."

The website goes on to say that many of these young people are coming from the Bay Area in search of cheaper rent and the ability to own a home.

The forum claims that "Stockton is quickly becoming one of California’s most sought-after places to live."

So the time for commercial real estate investment is now before interest continues to grow.

Overall, Stockton has a lot to offer including affordability, a growing economy, and a diverse population.

Take Action Fast: Capitalizing on Affordable Investing Opportunities Before They Are Gone

Now that you know five more affordable cities to rent commercial real estate, it is time to start looking for properties in these areas.

If you are new to making commercial real estate investments, then be sure to do your research before making any decisions.

Investing in commercial real estate can be a great way to make a profit, but it is important to know what you are doing before you get started.

Anyone who has ever rented a property knows that it’s a big investment. Not only do you have to pay rent depending on the type of lease you secure, but you may also have to pay for repairs, property insurance, and ongoing maintenance.

Look for areas that are growing and have strong economies.
Consider the location of the property. Properties in prime locations will always be more valuable than properties in less desirable areas.

By taking the time to find a property with potential, you can ensure that your real estate investment will be a wise one.