We are seeing a number of institutional investors, REITs, hedge funds and so on moving into secondary markets like Central Ohio looking for good buys. Not just sniffing around for a bargain, but desperately seeking product they normally would pick up in larger U.S. markets.
But pent-up demand to buy, combined with large cash reserves, combined with a larger number than usual of well-heeled buyers seeking institutional grade properties, all have collided into a perfect storm of sorts in places like Columbus, Orlando, Indianapolis, Albuquerque, and the Carolinas to name just a few. A veritable perfect storm, if you will, of demand, cash and too few quality properties.
As NREI Contributing Editor W. Joseph Caton put it this way in a story published today,
"...While the media reports sensational stories about institutional players fighting over stakes in assets such as the GM Building, 666 Fifth Avenue, the John Hancock Tower and the Peter Cooper Village/Stuyvesant Town project, Class-B properties and secondary markets are capturing the hearts and minds of another breed of investors."In fact, most analysts are saying that transactions in Class-B and secondary markets appear to be on the rise as "the" investment assets of choice.
The bottom line? Less glitzy properties will likely determine the certainty of the recovery.
Worth reading, then pass it on.
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