Commercial real estate can serve as a powerful portfolio diversification tool, and understanding the industry’s trends can give advisers and their clients a leg up, especially when it comes to property transactions and pricing movements.
With gateway cities having turned hyper-competitive and overpriced, a slew of second-tier markets are on the rise and attracting investor capital. Cities such as Atlanta, Austin, Houston and Miami are looking second-to-none in the eyes of investors looking to put their capital to work.
It is about time for the bridesmaids to take center stage as they scramble for the bouquet. We have reached the point in the real estate cycle where the usual belles of the ball — the “gateway cities” — are becoming less attractive as prices rise and yields fall, while the charms of so-called secondary cities are tugging at investors’ heartstrings and wallets.
There is general agreement as to which U.S. markets are the perennial “bel