Attractive Benefits For Investing In Secondary And Tertiary Markets

Dana on November 30, 2021

Attractive Benefits For Investing In Secondary And Tertiary Markets

 

Real estate investors are attracted to primary markets because of their stability, investment activity, economic strength, and employment opportunities for future population growth.

 

Primary markets receive investor attention but with the current market trends and fiercely competitive landscape in primary markets, real estate investors are finding few attractive investment opportunities.

 

As a result of the pandemic combined with shifting consumer preferences, real estate investors may see secondary and tertiary markets as more attractive markets.

 

Why you might consider investing in secondary and tertiary markets?

 

Excellent potential for return on investment

Higher potential available cap rates in secondary and tertiary markets may help investors to realize better return on investment compared to primary markets.

 

Less bidding competition

The focus of powerful private equity funds and REITs on primary markets creates strong competition resulting in higher prices and reduced investment cap rates.

 

national general contractor

Value-add attractive opportunities

The saturation in primary markets translates into few investment opportunities with an excellent potential for property renovation and repositioning.

Investing in repositioning of B and C class properties in secondary and tertiary markets might provide as good or better return on investment for real estate investors than focusing only on primary markets and A class properties.

 

Strong growth potential

Secondary and tertiary markets may offer lower cost of living that combined with the current shifting demographic trends and customer preferences could increase the future value appreciation potential for real estate investors.

 

Accessibility and investment value

As a result of smaller competitive pressure, secondary and tertiary markets might be financially more accessible than primary markets and could provide better investment value in the long-term.

 

Less potential volatility

During a potential market downturn, secondary and tertiary markets with high growth have a tendency to be less volatile that makes them an excellent investment.

 

Discover attractive opportunities and enter early

For those defining these markets based on growth, getting in before real estate values begin ramping up is a major advantage.

 

Due to the pandemic many areas that did not classify as high-growth before 2020 suddenly became attractive growing markets in 2020 and 2021.

 

As growing number of people started working from home, they started relocating from major metropolitan areas with high rents to properties in less densely populated areas with lower rents and valuable amenities that match their lifestyle.

 

The market trends and affordability of tertiary and secondary markets are making them attractive relocation spots but at the same time they present excellent new investment opportunities for real estate investors.

 

Making the selection of right strategic partner with a stellar track record that can execute the entire process from start to finish can provide a great value for future real estate investors to avoid potential delays, loss to lease and higher construction costs.

 

Ready to start your next investment project?

Please contact us to learn how we can best help you to turn your next investment project into a success.

Email: [email protected]

Telephone: (954) 570-0300

Address: 850 SE 7th Street, Deerfield Beach FL 33441

About Adivo Construction

We are a national general contractor with over 50 years of combined construction expertise specializing in the value-add improvements of apartment communities.

Our mission is to assist our clients in finding the right balance between capital expenditure and appreciation potential by designing and executing customized renovation programs that are focused on increasing cash flow return and overall return on investment.

We have completed over 100 repositioning projects for publicly traded and privately held domestic and foreign companies in states such as Florida, Texas, Kentucky, Oklahoma, Georgia, South Carolina, Utah, North Carolina, Tennessee, Indiana, Michigan, Missouri, Arkansas, Ohio, Arizona, Nebraska, and Kansas.

 

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