CRE Will Stay On Road to Recovery in 2014

NEW YORK CITY-The US real estate recovery is set to continue along the path of recovery this year, with investors increasingly looking beyond some of the traditionally popular markets to secondary markets in search of higher yields, according to Emerging Trends in Real Estate 2014, co-published by PwC and the Urban Land Institute.

The predicted growth in secondary markets will stem from investors searching for returns as opportunities in core markets become harder to find and the best assets become more expensive, according to the report’s findings, which stem from an industry survey. As a result, it’s anticipated that 2014 may be the year that many investors who have traditionally focused mainly on large established markets such as Boston, Chicago, Los Angeles, New York City, San Francisco and Washington, DC will expand their focus to other cities in order to protect capital. This trend, first noted in last year’s Emerging Trends report, is likely to build substantial momentum this year given the steady pace of improvement in market fundamentals in secondary markets and with more investments in those markets meeting investors’ risk/return metrics.