Secondary Markets Heading into First Place

A 2014 Commercial Real Estate Outlook Survey conducted by tax advisory firm KPMG shows that secondary markets are proving to be a first choice for many commercial real estate executives as the economy continues to pick up. CRE investors are looking to develop assets and deploy capital in secondary markets to generate returns.

For example, Connecticut real estate close to New York City has provided some of these opportunities. Interest in the Danbury, Conn., area is increasing, but available properties are at a premium. One real estate investment company had to fend off competition for a 215,000 square-foot office complex there last year.

Of the 100 senior CRE executives surveyed, 68 percent expect to increase capital spending in 2014, up from 60 percent in 2013.