‘Rebirth of the City' Report Illuminates Shifts in Primary Markets

Primary markets are primed for revitalization, and this is directly correlated to many individuals and families having the freedom to live where they want. These implications can be felt coast to coast, as the trend grows with people taking the opportunity to enter primary markets, and others deciding it is their time to leave. Meanwhile, secondary markets that offer a high quality of life will continue to grow.

Commercial real estate firm Graceada Partners analyzes this city rebirth trend and highlights data to predict the trajectory of these markets. The report, entitled “Rebirth of the City: Why Primary Markets Are Primed for Revitalization” can be viewed here.

“To borrow from a famous Mark Twain quote: Reports of the city’s death have been exaggerated,” said Ryan Swehla, co-founder and co-CEO of Graceada Partners. “While we have seen short-term migration out of many major cities over the past year, their fundamental attributes will ultimately bring people back. This report explores how that’s happening and what that means for the commercial real estate landscape.”

The impact this trend will have on the economy is broken down by Graceada Partners into five predictions, further detailed in the report itself:

1. Apartment owners that create workspaces will thrive

2. Companies that embrace intentional office work will be the real winners

3. A resurgence of entrepreneurship

4. Cities with low employment or housing opportunity will stagnate

5. People who left big cities won’t be returning

Vast amounts of employees are untethered from their place of employment, which accelerated demand in some secondary markets, as mentioned in Graceada Partners’ previous report on the Outpost Economy. The drop in rent prices across major metropolitan areas—Chicago, New York City, and Los Angeles—may incentivize those in smaller markets to relocate into these primary markets. Additionally, markets with high quality of life—such as Sacramento, Austin, Nashville and Charlotte—will witness continued population growth as long as they continue to offer a perceived higher quality of life for residents.

“There’s a fascinating fluctuation taking place in primary markets,” said Joe Muratore, co-founder and co-CEO of Graceada Partners. “During the early stages of the pandemic, people craved space and felt like it added to their personal safety. However, the pendulum is swinging back toward community and opportunity and prime markets have a lot to offer.”

Furthermore, the report states that retail in primary markets will slowly return but with a continued focus on creating experiences for shoppers. Also, the report explores multifamily and office buildings in primary markets and what experts anticipate in the coming months.

To access the full report, visit: https://www.graceadapartners.com/rebirth-of-a-city.