Plenty of Daylight Left in the
Secondary Sunbelt Markets
Office-using jobs and net migration
point to continued strength
- 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.