Search
 

Office Investors Head to the Suburbs for Better Yields

Andrew White of Gladstone Commercial says that while CBD office product is getting 4% cap rates, investors can find cap rates at 7.5% in suburban markets.

By Kelsi Maree Borland | kelsimareeborland | Updated on June 30, 2017

Don’t discount the suburban markets. While the CBD office market is attracting the most attention from investors—and the highest pricing—Andrew White, managing director of the Western Region at Gladstone Commercial, says that investors may be able to find better opportunities and yields in suburban markets. He defines ‘suburban’ as areas at least 10 miles outside of the CBD, and in Los Angeles that includes markets like El Segundo, which has seen growth as a result of overflow from the surrounding CBD markets. The trend, however, isn’t exclusive to Los Angeles. He is seeing suburban markets across the West Coast presenting good office investment opportunities. To find out more about this trend, we sat down with White for an exclusive interview.

GlobeSt.com: Why does suburban office present a good investment opportunity versus CBD office?

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.