Matthew Cypher’s (@MatthewCypher) recent article for Urban Land Magazine entitled “The Risk and Reward of Investing in Secondary Markets” argues that while “gateway markets” (Boston, New York City, Washington, D.C., Los Angeles, San Francisco and Chicago) are generating substantial competition for sought after properties, the secondary markets are worth a hard look as an opportunity to locate value and respectable investment returns.

Motivated local governments are increasingly interested in streamlining the approval process, and even willing to consider economic incentives, for new-job generating economic development. Secondary (and even tertiary) markets, with motivated local government partners, may reduce entitlement risk and offer diversity to a balanced real estate portfolio.