Performance and Timing of Secondary Market Investment Activity

Conditions are ripe for a shift in focus to commercial real estate’s secondary markets. Bolstered by the potential for more stable national economic trends, buyers’ improving tolerance for risk-taking, and a widening disparity in yields across primary and secondary markets, investors are broadening their sights.

Apart from their rankings on the commercial real estate investment hierarchy, secondary markets present investors with distinct opportunities and risks. As the economy expands and the distance from the financial crisis widens, understanding secondary markets’ performance patterns and their risk-return tradeoffs becomes an increasingly important task for investors, lenders and policymakers.

Download

Executive Summary (full report page 4)

Full Report (full report page 5-19)

Appendices

• Appendix A: Changes in Gross Metro Product (2007 -- 2011)
• Appendix B: Population Trends by Metro Statistical Area (MSA) (2002 -- 2012)
• Appendix C: Location Quotients by MSA (2007 -- 2012)
• Appendix D: 20-Year Employment Correlations by MSA (1992 – 2012)
• Appendix E: Credit Ratings by MSA (2007 -- 2010)

Full Report with Executive Summary, Report text and Appendices