NEW YORK CITY—Evidently it's not only lower prices, and therefore higher yields, that draw investors to office properties outside the six gateway markets. It's also comparatively strong fundamentals.

Research from Cushman & Wakefield Capital Markets shows that secondary office markets, mainly in the Sunbelt, are outperforming when it comes to rent growth and net absorption. On a year-over year-basis through June 30, for example, rent growth in secondary Sunbelt markets has been 4.5%, compared to an average of 3.2% for the likes of San Francisco or Manhattan. Leading the way are Nashville (9.9% Y-O-Y), Austin (8.7%), Baltimore (8.3%), Miami (6.5%) and Phoenix (5.8%).

Looking ahead, office rent growth through 2019 is projected at 2.6% for these markets in the so-called “smile states”—including Atlanta, Dallas, Charlotte, Miami and Phoenix—or twice as fast as the 1.3% projected for the gateway cities. That dovetails with projected growth in office-using jobs of 2.3% for secondary Sunbelt cities and 1.1% in gateway markets.