Real Estate Markets with High Tech, Education and Medical Institutions
5/1/2013 1:52 PM
Submitted by A. Smith
Industry experts are predicting that the commercial real estate marketplace will continue to recover slowly in 2013. The modest uptick in job creation coupled with a limited supply of new space will continue to force vacancy rates down in all sectors.
As the vacancy rates slowly drop, they expect to see investors allocating more of their capital to the real estate asset class. There will be a contingent of investors looking into the riskier secondary markets, but the majority will still be looking to invest where there are high quality tenants within markets that are showing steady job growth.
The major markets across the U.S. will offer some of the best investment opportunities. Due to this widespread realization, those markets will see a lot of competition for investment in various real estate assets. It is thought that smaller markets such as Rochester, NY, where there are a substantial amount of high-tech companies as well as a strong base of jobs held in higher education and medical institutions, will perform well over the long haul. It will be critical for investors looking into these smaller markets to partner with real estate advisors that understand the local market and can assist them in analyzing the various opportunities that are available.