NEW YORK CITY-As investors continued their flight-to-quality in core markets throughout 2011, investors predict that the new year could shine a light on a longstanding dark spot in the CRE community: secondary office markets. According to fourth quarter results from Pricewaterhousecoopers’ Real Estate Investor Survey, investors said buying opportunities beyond core markets remains “tricky,” but expectations for tenant retention and rent growth within the office sector remains high.

Based on these responses, Mitch Roschelle, partner of the US real estate advisory practice at PwC, tells GlobeSt.com that two things are happening simultaneously: tenants are taking longer-term leases and rents are going up as a result.

“What we are seeing now is an end of the recession with a rise in expectations of tenant retention and high expectations in rent growth,” Roschelle says. “If you ask which one is the chicken and which one is the egg, since tenants are opting to stay put, landlords are more in the driver’s seat and can drive rents up.”