Americas Capital Markets Spotlight - Cushman & Wakefield

Americas Capital Markets Spotlight

Plenty of Daylight Left in the
Secondary Sunbelt Markets

Office-using jobs and net migration
point to continued strength

Key Takeaways

  • Secondary Sunbelt office markets are priced to offer attractive, risk-adjusted returns relative to the Gateway markets.
  • Strong net migration and office-using employment growth will drive net absorption over the next two years in these markets.
  • Rent growth has already accelerated in many markets and will continue to outperform as the construction pipeline remains muted.
  • While investor interest has begun to shift towards these markets, turnover rates in this cycle suggest opportunities remain, particularly in suburban locations.