It wasn’t long ago when big city office skyscrapers and downtown apartment towers offering the proverbial live-work-play lifestyle were the gem in real estate but now they are taking a back seat.
Residents increasingly are opting for secondary and tertiary markets over metropolises with companies and investors following suit. Smaller areas are boasting population growth and big company relocations, and they are taking a bigger bite out of all commercial real estate deals, according to a Marcus & Millichap report.
A market like Florida’s Jacksonville is tertiary, Orlando is secondary and West Palm Beach primary. Texas’ Austin is secondary and San Antonio is tertiary, while Houston and the Dallas-Fort Worth area are primary. Charlotte, Las Vegas, Nashville and Phoenix are secondary, while Salt Lake City is tertiary and the Seattle-Tacoma area primary.
The coronavirus pandemic is playing a role as residents are seeking less densely populated areas where there’s less spread of the virus but that’s not the only factor. Firms and investors already were active in smaller cities in the years prior the outbreak, according to the report that focuses on migration and commercial real estate impacts.