Office Investors Strategically Shift to Suburban Product

Tina Lichens

Office investment is picking up in suburban markets. According to a recent office sentiment report from Real Capital Markets, office investors are becoming more bullish on select suburban office markets with strong job growth. In fact, 37% respondents in the survey said that value-add deals in suburban markets were the best opportunities in office investment today.

“In large part, well-located suburban office buildings have increased in their attractiveness to investors because of the perception that we are late in this investment cycle coupled with investors’ focus on growth, value and yield,” Tina Lichens, COO at Real Capital Markets, tells GlobeSt.com. “These strategies are more difficult to achieve with many stabilized assets such as well-located downtown properties and trophy assets.”