Surf's Up via CCIM Institute

Secondary markets are riding a wave of recovery that has brought a welcome resurgence of investment sales activity.

The expansion into secondary markets is the theme du jour in the commercial real estate market. “We have seen a massive movement of capital from primary locations to secondary locations, both on the equity and debt side,” says Dan Fasulo, a managing director at Real Capital Analytics in New York. “That has created not only an explosion of investment activity, but a corresponding rise in values in these secondary markets,” he adds.

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.

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