Investors looking for yield in a low-interest rate environment are running to invest in commercial properties in second-tier U.S. cities where rents are just now starting to rise, according to Bloomberg News.
Investors seeking returns on commercial properties have been eyeing office towers in cities such as Seattle and Atlanta, the news agency reports.
Secondary markets outside of key areas like New York, Los Angeles, Washington, Chicago and Boston represented 31% of all office transactions in the third quarter, according to Bloomberg.
This change comes at a time when low interest rates have made other assets less attractive to the investor class, prompting a turn towards commercial real estate in areas where values are starting to rebound slowly, but surely.
