Secondary Markets Are Becoming First-Choice Investments

Pierce discusses why secondary markets are becoming the first-choice investments. The commercial investment market is always searching for properties that offer reasonable costs of entry and attractive returns upon exit. For many investors, office properties have long been a staple of asset allocation. They offer good returns throughout most of the real estate cycle, and historical data support rent growth expectations over the long term. The risks may be greater than industrial or smaller retail properties, but the rewards are correspondingly substantial. Recently, investors have placed more bets in secondary markets and, perhaps more surprisingly, in suburban properties in those markets.