Strong job growth in manufacturing, transportation and warehousing in the third quarter spurred greater commercial real estate demand in various places, including Nashville, Tenn., San Antonio and Seattle, according to a new report from the National Association of Realtors (NAR).

The association’s quarterly Commercial Real Estate Demand Index shows industrial employment remained generally flat nationally. Still, in areas where industrial employment was strong, demand for commercial real estate increased.

Of the 306 metropolitan areas tracked by the index, 143 scored above 100 for the quarter, which indicates stronger demand drivers relative to other markets.

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The scores measure the local economic conditions that can support demand for commercial space. A score of 100 represents the average metropolitan area. Scores below 100 indicates weaker relative momentum, but not necessarily a shrinking industrial market.

NAR singled out certain metro areas for their high growth rates, including San Antonio, which jumped 67 spots year over year to place ninth with a rating of 120. San Antonio’s surge was due to its population gains and rapid growth in the manufacturing, transportation and warehousing sectors.

Other major cities that have improved their industrial job environment during the past year included Nashville, which rose from 73rd to 20th on the list, with an index rating of 115.4. The growth was due to its rapid population growth, strong job creation and favorable business environment.

Seattle rose from 146th to 44th in the index with a score of 111. The city is a well-known aerospace and technology center, as well as a premier Pacific Rim distribution hub.

Los Angeles, with a score of 90.1, continued to score below average, as did Miami at 95.5 and New York City at 94.5. San Francisco also lagged with a score of 91.6, but it improved about five points in the past year.

Smaller markets outperform major cities

Major cities did not fare as well as some smaller regional players. Topping this year’s index once again was St. George, Utah, a rapidly growing commercial market in the southwest corner of the state. It earned an index rating of 131.7.

Next on the list was Huntsville, Ala., a defense and aerospace hub known for its strong growth and economic expansion, which earned a rating of 124.5.

In third place was Fayetteville-Springdale-Rogers, Ark., a fast-growing corporate and economic center that is gaining an estimated 40 residents per day. It earned a rating of 123.5.

The Sherman-Denison metropolitan area of North Texas — an industrial and high-tech manufacturing hub that is often referred to as part of the “Silicon Prairie” — was fourth on the list with a 123.2 index rating.

Rounding out the top five metros, with a 121.5 index rating, was Ocala, Fla., a logistics and industrial hub that sits along four of the state’s six major trucking arteries and is a center for warehousing and distribution centers.

“While industrial employment has been relatively flat nationally, some markets are adding jobs much faster than others,” said Nadia Evangelou, principal economist and director of real estate research at NAR, in a press release. “San Antonio is a good example, moving from 76th to ninth in just one year. These differences in local employment growth are reshaping which markets show the strongest commercial real estate demand signals.”