Investing in Secondary and Tertiary Real Estate Markets | Adrian Provost, LEVEL


Nothing contained in this Video constitutes or should be construed to constitute investment, legal, tax or other advice. You should not rely on any information or opinions contained in this Video in making an investment or other decision but should obtain relevant and specific professional advice. cap rate is a way to measure and value
real estate the formula for cap rate is essentially the net operating income
divided by the current market value of that asset in terms of commercial real
estate the primary market has a population exceeding five million people
a secondary market counts between two to five million people and a tertiary
market would have a population below two million people real estate investors
seeking higher cap rates and cash on cash returns should explore
opportunities and secondary and tertiary markets cap rates are remaining higher
in these markets whereas they’re declining in primary markets across the
nation a few things to consider when investing in secondary and tertiary
markets are primary demand generators vacancy metrics and economic conditions
things like tourist attractions large-scale Commerce as you know for
example that Amazon is penetrating the market with the new distribution center
then obviously that’s going to mean that more jobs whether it be created you want
to look at the population growth you want to look at market characteristics
you want to see what sort of changes are occurring in the market when purchasing
properties in secondary and tertiary markets many investors overlook the
quality and quantity of property managers that specialize in their
specific asset type the last thing you want to do is have an asset in a small
town being held at the mercy of a property manager because that property
manager is the only option around to learn more you can visit Adrian Provost
comm or compass commercial brokers comm you

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