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Manatee-Sarasota
Business Observer Friday, Oct. 7, 2016 5 years ago

A positive trend for Gulf Coast CRE?

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“As pricing in first-tier markets stalls and yields hover in the sub-4 percent range in some of the major gateway markets — which are, in some cases, already in peak pricing territory — we should probably expect investors to move more aggressively into secondary and tertiary markets — and to opportunities beyond core assets to core-plus and value-add properties.”So says David Lynn, CEO and chairman of Scottsdale, Ariz.-based Everest Medical Core Properties.
by: Kevin McQuaid Commercial Real Estate Editor

“As pricing in first-tier markets stalls and yields hover in the sub-4 percent range in some of the major gateway markets — which are, in some cases, already in peak pricing territory — we should probably expect investors to move more aggressively into secondary and tertiary markets — and to opportunities beyond core assets to core-plus and value-add properties.”
So says David Lynn, CEO and chairman of Scottsdale, Ariz.-based Everest Medical Core Properties.

The push into secondary and tertiary markets — think Tampa, Sarasota and Naples — could mean a further boon to Gulf Coast commercial real estate markets for the next two years or beyond.

Lynn's comments to National Real Estate Investor were one of five trends that will impact markets in 2017. He says he also believes that global political uncertainty over the British exit from the European Union and low interest rates and cap rate compression, foreign investment in the U.S., a lack of new supply and volatile energy markets worldwide will play a major role in commercial real estate going forward.

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