Why Secondary Markets are Heating Up
The latest PwC Emerging Trends in Real Estate report reveals a fascinating trend in the commercial real estate space. While primary markets like Chicago and Los Angeles underperformed in the aftermath of the pandemic, “secondary” markets like Denver and Nashville have seen a new wave of interest from investors.
While this trend predates COVID-19, there are some unique developments to watch out for. For the first time in a decade, we’re seeing new metropolitan areas like Phoenix crack PwC’s top ten markets to watch.
A Focus on the Sun Belt
The sun belt – which encompasses the Carolina, Arizona, and Texas – has been especially appealing to investors. While the rest of the nation has faced an uphill climb to regain economic productivity, Sun Belt cities are thriving. These regions have demonstrated a much quicker economic recovery and solid performance even under harsh conditions.
Combine this with the reality that Sun Belt cities are known for great quality of life and a business-friendly ethos. It’s no wonder they’ve become so popular.
The Impact of “Supernova” Metros
PwC also highlighted a new classification in their report: Supernova markets. These are the markets that offer stellar investor appeal and exciting prospect for growth. Included in this category: our very own Raleigh and Durham.
While some may be surprised by our addition to the list, locals know that Raleigh and Durham have been on the rise for years. As people search for better work/life balance, they’re naturally drawn to our region for the high quality of life.
Demand for Properties is Increasing
As more individuals and businesses move into our area, demand for property has grown across sectors. For instance, we’ve seen an increased investment in multifamily locally, as well as rising demand for industrial and warehouse space. While it’s important to note that this is part of a larger, long-term trend, investment activity seems to have only accelerated over the last several years.
If you’re considering investing in the bright future that Raleigh and Durham offers, Insight Property Group can be your guide. Tell us about your goals and we’ll help find you the ideal property for your needs. Contact us now or give us a call at 919.833.2200.