Best States for Commercial Real Estate Investors
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 14
- 2 min read
Commercial real estate (CRE) continues to be a lucrative investment opportunity in 2025, especially in states with strong economies, population growth, and business-friendly policies. Whether you're investing in office buildings, storage warehouses, retail spaces, or multifamily units, location can make or break your ROI.
Here are the top states for commercial real estate investors based on market performance, growth potential, and investor demand:
1. Texas
Texas remains a powerhouse for CRE investment. Cities like Dallas, Austin, and Houston offer strong job markets, population growth, and diverse industries—from tech to energy. The state’s lack of income tax and favorable business climate make it a top choice for investors.
Popular Property Types: Industrial, retail, multifamily
Insurance Tip: Due to hurricane risks, consider adding windstorm and flood coverage. Wexford Insurance offers tailored policies for Texas investors.
2. Florida
Florida’s booming tourism, healthcare, and tech sectors drive demand for commercial properties. Miami, Orlando, and Tampa are hotspots for retail, hospitality, and office investments.
Popular Property Types: Hotels, retail, office
Insurance Tip: Flood insurance is essential in coastal areas. Wexford Insurance provides coverage for Florida-based properties.
3. North Carolina
Charlotte and Raleigh are emerging as tech and finance hubs, attracting investors to office and mixed-use developments. The state’s affordable property prices and growing population make it ideal for long-term investment.
Popular Property Types: Office buildings, mixed-use
Insurance Tip: Business interruption coverage is recommended for urban properties.
4. Arizona
Phoenix leads the way in industrial and warehouse investments, thanks to its strategic location and expanding logistics sector. Arizona’s low taxes and infrastructure growth make it a rising star.
Popular Property Types: Storage warehouses, industrial
Insurance Tip: Protect against equipment breakdown and liability with Wexford’s comprehensive plans.
5. Georgia
Atlanta’s diverse economy and tech growth make it a magnet for commercial investors. The city offers strong rental yields and a favorable regulatory environment.
Popular Property Types: Multifamily, retail, office
Insurance Tip: Consider coverage for tenant liability and loss of rents.
Final Thoughts
Investing in commercial real estate is about more than just buying property—it’s about choosing the right market and protecting your assets. Whether you're expanding your portfolio or entering the CRE space for the first time, these states offer strong opportunities in 2025.
Wexford Insurance is your go-to source for commercial property insurance across the U.S. We offer customized coverage for all property types, including apartments, office buildings, storage warehouses, and more. Connect today!
FAQs
1. What factors make a state ideal for commercial real estate investment?
Population growth, job market strength, tax policies, and infrastructure development are key indicators.
2. Do I need insurance for each property in different states?
Yes, insurance requirements vary by state. Wexford Insurance can bundle multi-state properties under one policy.
3. What types of commercial properties are most profitable in 2025?
Industrial, multifamily, and mixed-use properties are showing strong returns across several states.