It seems the city's accommodating demographics and solid economic standing are behind its success. Unemployment in the city was down to 3.5% as of the beginning of the year, and consistent consumer demand for product has spurred growth in the retail sector. The increase in demand led to an expansion in the retail sector, thereby lowering the already reasonably low retail real estate vacancy rates to 6%.

"Investors' seemingly insatiable appetite, especially for single-tenant properties, is continuing to push up prices and compress cap rates," Marcus & Millichap regional manager Andrew Boyle adds. Orange County, CA followed Washington, DC in the survey, while number 38, Cleveland brought up the rear.