Philip Martin, vice president of market research at Waterton

ATLANTA—Commercial real estate prices have skyrocketed and are not expected to dip in the near future. In fact, it’s not uncommon for even class A properties to sell at A-plus rates because of the heavy competition for these prime assets.

It’s well known that core markets have historically provided stronger and more consistent returns over the long term. Yet these days, secondary and even tertiary markets are enticing more strategic investors, looking to achieve preferred yields through value-add opportunities—to bet on strong assets in non-core markets.

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