May 8, 2014
This is an article in the April addition of CCIM magazine about the recovery in the secondary US Commercial Real Estate markets. These were the areas hardest hit by the recession. Urban areas like Manhattan and San Francisco didn’t dip significantly and prime properties are trading in these markets at a 4% cap – hard to build in much growth at those returns. Many investors are moving to secondary markets such as Pittsburgh, Minneapolis and Phoenix. Transactions are up, prices are up and Cap Rates are down…
“Growing confidence in the economic and commercial real estate market recovery has been a boon to investment sales in the past 18 months. Fueled by interest rates that remain near historic lows, investment sales surpassed $355 billion in 2013 — up 19 percent over the $299 billion in sales that occurred in 2012, according to Real Capital Analytics. After a considerable dry spell, secondary and even tertiary markets across the country are experiencing a spike in investment sales. – See more at: http://www.ccim.com/cire-magazine/articles/323456/2014/03/surfs#sthash.7mQot8Df.dpuf
