New Property Markets Popping Up
Top real estate markets like San Francisco, Seattle and Boston have benefitted from favorable demographics and buoyant economies during the recovery. But what about, say, Oklahoma City?
Tech and energy booms and population shifts are spreading recovery to a growing list of secondary and tertiary real estate markets—including the capital of Oklahoma—according to “The Top Trends and Markets to Watch in 2013,” a new report from the researchers at commercial real estate brokerage firm Sperry Van Ness International Corp.
“We didn’t focus too much on the big six markets,” says Diane Danielson, chief platform officer at Sperry Van Ness. “A lot of the big six markets have matched the peak of before the recession.”
That means that places like New York City and Los Angeles have relatively less upside even as the U.S. economy continues to recover.
Instead, a growing set of real estate experts are looking to smaller markets for opportunities.
“A lot of those lesser markets are more reliant on a single industry,” says Brad Doremus, senior analyst for data firm Reis Inc.
That means a smaller market may see a quick improvement if the business it depends on improves. The Sperry Van Ness report highlights “the geography of recovery,” and the implications for multifamily and commercial real estate investments in these smaller markets. Here are four trends it outlines.