Commercial Real Estate News - Secondary markets will outgrow the country’s major cities

Which markets should grow the fastest? Generally, prices tend to appreciate where jobs are available and people are drawn. Which should be the slowest? The ones where they are not. You would think that major cities like Manhattan, Chicago or Miami are more apt for commercial real estate due to that they are larger cities. You would think that larger cities provide more jobs. In recent years, we have watched a migration from gateway cities like New York to smaller markets like Tampa, Charlotte, Phoenix and other cities. While the job market may not be as hot as major cities in secondary markets, new opportunities arise. First, in secondary markets you can find commercial real estate which is less expensive than primary markets. Second, even though the job market may not be strong the cost of living causes migration from bigger markets into secondary markets.

This year, expect cities such as Phoenix, Atlanta and Charlotte to show the strongest rise in growth, as jobs, population migration and attractive market dynamics contribute to appreciating prices across major asset types. NEED FINANCING TO ACQUIRE COMMERCIAL REAL ESTATE CONTACT US: 888-505-5835