Secondary Markets are on Fire - Dallas #1 CRE Market Q1-Q2 2020

[Jorge Gonzalez]

According to Real Capital Analytics, a company that tracks trends & data the commercial real estate investment markets, has released and published data on cities have had the most investment activity in Q1-Q2 2020.

See article https://www.rcanalytics.com/ch...

And to no surprise, Dallas, DFW area, has soared to #1 spot in volume in capital investment, total $9.3B. It is the first year it surpassed tier 1 markets such as New York, Los Angeles, Seattle, which makes sense as these cities have been impacted significantly by the pandemic. However, it saw a ton more investment capital compared to other secondary real estate markets such as Atlanta ($5.6B), Houston ($5.0B), Denver ($4.4B), Phoenix ($4.4B), Austin ($2.1B). The Dallas market is on fire. This shows that there is a ton of interest in secondary markets moving forward as cap rates, occupancy rates, and rents have been falling in tier 1 markets. Another observation is that all of the secondary markets saw jumped in rankings, with the exception of Austin. Other notable players that saw jumps are Charlotte and Raleigh. Definitely interesting trend to see how people are adjusting their investment strategy within real estate in post pandemic times. What are your thoughts?