Investors spent much of 2011 crowding into top-tier cities in search of the perfect distressed opportunity. And although prime assets continue to draw significant interest, many investors are turning to the often-overlooked secondary and tertiary locations, despite turbulence in the global financial markets and worries surrounding the eurozone debt crisis. Those lower-tier markets, experts say, can offer surprising opportunities in both pricing and asset quality.
Moving toward the mid-part of 2011, investors began to shift their focus from the core, well-located primary assets—where cap rates had dropped to the low 5s and 4s in the best markets—to more secondary markets or assets with more fundamental risk, explains New York City-based Jay Koster, Jones Lang LaSalle’s Americas capital markets president. “However, given the recent worldwide market volatility, investors’ overall desire for risk has become muted and they remain very price-sensitive for any additional market or fundamental risk they are undertaking outside of those prime markets.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
