“Location, location, location” isn’t just a cliché – it remains the cornerstone of successful industrial investing. While tenant needs and supply chains evolve, the fundamentals of where properties are located continue to drive long-term value. For investors, targeting growth markets ensures exposure to strong tenant demand, resilient occupancy, and opportunities for appreciation.
Established Industrial Hubs
Certain U.S. metros stand out as perennial leaders in industrial real estate:
- Dallas–Fort Worth: One of the nation’s fastest-growing regions, DFW benefits from a diverse economy, central U.S. location, and infrastructure that makes it a logistics powerhouse.
- Houston: Anchored by energy but rapidly diversifying into healthcare, aerospace, and advanced manufacturing, Houston combines population growth with global connectivity through its port system.
- Chicago: As the largest distribution hub in the Midwest, Chicago continues to dominate thanks to its central location, multimodal transit, and depth of labor pool.
- Atlanta: A southeastern gateway with one of the busiest airports in the world, Atlanta’s population growth and distribution networks drive sustained demand for industrial space.
These hubs consistently record strong absorption and low vacancy, offering investors the scale and tenant diversity needed for stability.
Emerging Growth Markets
Just as important are the rising markets that are increasingly attracting capital and tenants:
- Phoenix: A major beneficiary of reshoring and e-commerce growth, Phoenix offers affordable land and a booming population, positioning it as a new manufacturing and logistics hotspot.
- Salt Lake City: With its young workforce, central western location, and expanding tech sector, Salt Lake has become a magnet for tenants seeking lower costs without sacrificing connectivity.
- Raleigh–Durham: The Research Triangle’s strong innovation economy and rapid population growth are fueling demand for flex and light industrial space.
- Tulsa & Oklahoma City: Affordable alternatives to Texas metros, these cities are drawing tenants priced out of Dallas and Houston while benefiting from central U.S. access.
- Detroit: Markets like Farmington Hills are benefiting from the auto industry’s EV transformation and federal investment in advanced manufacturing.
These metros may not match the scale of established hubs, but they offer outsized rent growth potential and entry prices below replacement cost – key ingredients for investors seeking long-term value creation.
Why Growth Markets Matter for Investors
Targeting the right locations provides a competitive edge by aligning investments with:
- Population and job growth that sustain tenant demand
- Diverse economic drivers that reduce industry concentration risk
- Infrastructure expansion that enhances accessibility and distribution efficiency
- Tenant stickiness in markets where logistics advantages are difficult to replicate
For industrial investors, being in the right market amplifies the impact of every other strategy – leasing, repositioning, and exit timing.
No amount of capital improvements or management expertise can make up for being in the wrong place. That’s why location still matters – and why growth markets remain the foundation of Avistone’s investment strategy. By focusing on metros with expanding populations, strong infrastructure, and diversified economies, industrial investors can achieve the stability and upside needed to thrive in today’s competitive landscape.
In industrial real estate, location isn’t just important – it’s decisive.
