Shift to Secondary and Tertiary Markets Will Continue

January 15, 2013

As the real estate industry continues to recover from its multi-year slump, prospects for 2013 look stronger, particularly so for real estate investment trusts looking to raise capital by going public and a pickup in secondary and tertiary market activity. The real estate banking team at the investment firm Robert W. Baird is looking to 2013 with an eye to the following major investment themes.

As values for multi-family, industrial, and office developments rise in and around major cities, investor interest is likely to move to the secondary and tertiary markets where pricing is more favorable and demand is strong. These include markets such as Charlotte and Raleigh-Durham in North Carolina, San Antonio in Texas, and Seattle.