Investors are Turning to Secondary Markets

NNN lease Market News

Investors are turning to secondary markets as credit availability improves and surging demand for properties in New York, Washington and San Francisco boosts prices and reduces returns in those areas. Cities such as Dallas and Houston are attracting real estate buyers because of the prospects for job and population growth, according to Robert Bach, chief economist for Grubb & Ellis Co., a Santa Ana, California-based broker.
“It’s a story of investors gradually embracing risk,” Bach said in a telephone interview. “They’re looking at other markets to deploy cash.”  Prices for offices, the biggest part of the market, climbed 33 percent in New York and 21 percent in Washington in the fourth quarter from a year earlier, according to Moody’s Investors Service. That compared with a 1.7 percent gain nationally.

http://www.bloomberg.com/