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Not just playing second fiddle: Secondary cities offer investment opportunities in office properties
- June 1, 2024: Vol. 18, Number 6

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Not just playing second fiddle: Secondary cities offer investment opportunities in office properties

by Julian Truxa

In times of crisis, investors mainly look for quality and the security of real estate in central locations of the top European cities. It is, however, also worth looking at second-tier cities in many countries. Office property markets in these secondary locations often offer interesting potential in terms of occupancy rates, rental growth and higher yield levels.

A crucial element in the attractiveness of office space for potential tenants is that European second cities are popular with companies and workers, due to their advantageous locations and the quality of life they offer to residents. Some score highly due to a Mediterranean climate, others are attractive as they have less pollution. Other factors that draw in inhabitants include renowned universities and research centres, high connectivity, and good transport infrastructure, which allows for low commuter travel times.

Out of all secondary European cities, those in coastal locations have succeeded in developing

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