Secondary and Tertiary Markets
Hey guys I am looking for some input. I am a recent college grad and am looking to break into the commercial real estate industry. I have been offered a position a relatively young, but up and coming firm, in a major market focusing on retail investment sales (Both STNL and Multi-tenant). The catch is they want me to focus solely on secondary and tertiary markets (In TX). Firm breaks up regions for all its brokers and this what they have available for me. What are the pros and cons of working in these types of markets and would focusing on these limit my ability to eventually transition into working in a major market down the line?
[{"id": "fjehy14", "text": "Gotta build that reputation. That's how I am working at the moment.", "replies": [], "depth": 1}, {"id": "fjpvv1w", "text": "Stay away from secondary and tertiary markets sales volume is low and pricing is short. You might be \u201cthe guy\u201d for your market but if you\u2019re only doing 10mm a year in sales you won\u2019t make much money. I\u2019d do an RCA run on the markets you\u2019d be working in and take a look at volume over time to back into what the opportunity is. It\u2019s also tough to move from the \u201cback water\u201d to a major market where you can make decent money.", "replies": [], "depth": 1}, {"id": "fjpvyvl", "text": "Also retail investment sales in secondary and tertiary markets is a disaster right now. No one wants it, there is a huge flight to quality for retail and institutional money won\u2019t touch strip centers in tertiary markets because the inlines are all non-credit mom and pops which are impossible to lease too even if you have the hottest supermarket in town as your anchor.", "replies": [], "depth": 1}, {"id": "fjx7ujo", "text": "Texas is a high net migration market.  The group may be setting up to capitalize on that expansion.  Think riches in Niches.  We\u2019re on the Multifamily side and as long as the MSA is 120k people plus, we\u2019ll start exploring opportunities.\n\nHave you read any of the McKinsey institute publications?  Check this out.\n\nhttps://www.mckinsey.com/featured-insights/future-of-work/the-future-of-work-in-america-people-and-places-today-and-tomorrow", "replies": [], "depth": 1}, {"id": "fk28x5d", "text": "Retail is not my expertise but I am in a Secondary Market in a net positive migration state. I am seeing plenty of capital chasing yield and people are looking and have been looking heavily in Secondary markets. Think the nature of the game has changed with info being more readily accessible.", "replies": [], "depth": 1}]