Suburban shift: Three reasons office investors are shifting their focus to secondary markets surrounding urban cores
Unemployment throughout the United States is the lowest it has been since 2008. Propelled by robust job growth, the office sector is expected to continue to expand in 2018. Despite fears the U.S. construction boom would cause a potential slowdown, activity in the office sector remains largely expansionary, with the technology and creative sectors continuing to drive leasing activity. Although the office sector is expected to continue to grow this year, many owners and investors are reacting to the increased inventory in many primary markets across the United States. This supply increase, among other factors, has caused many investors to shift their focus to suburban markets in 2018.
Investors find these markets compelling for three reasons:Increased migration of millennials. Historically, the millennial cohort has dominated urban cores throughout the United States. Today, this is shifting. As millennials reach marriage, home-buying and childbearing yea