Report: ‘The Outpost Economy’ Continues to Define the American Real Estate Landscape
Graceada Partners shares 5 predictions on how this impacts work and life
Commercial Real Estate Experts elaborate on how market forces and the perpetuation of the pandemic have propelled this economic phenomenon
MODESTO, CALIFORNIA –– February 2022 ––There is a secular shift in how we work, live, and think about our lives—and it is elucidating opportunities in secondary markets across the U.S.
This transformation impacts housing, the economy, and investors everywhere and commercial real estate firm Graceada Partners captures these trends in its newest report “5 Ways the Outpost Economy is Changing America’s Landscape Today.”
The new report is a follow up to their 2021 “Rise of the Outpost Economy,” which elaborated on the rise of a more dispersed economy and employment base away from major cities to secondary and tertiary markets with a high quality of life. As the Great Resignation and population and real estate figures in rising markets around the nation show us, worker flexibility and movement is a phenomenon with significant longevity and substantial ramifications across multiple industries.
“Labor shortages, a pandemic, and an overall reimagination of where people must be physically located to perform their job functions is leading us to a Great Renegotiation between employer and employee,” said Ryan Swehla, co-founder and co-CEO of Graceada Partners. “It is adding fuel to the rapid expansion of the outpost economy, a consequence of a years-long evolution in how the economy is structured. Our report takes a deep dive into what this means for anyone with an interest in growing within a secondary markets and, frankly, the market as a whole.”
The new report examines how the current economic climate has shifted and its impact on markets nationwide. The outpost economy is accelerating trends like the decentralization of the conceptual and physical office, amplifying the permanent trend of more contractors, freelancers and microbusinesses, and expanding the market for single family rent-to-build homes. It is also directly impacting the demographics of primary markets, which could make the population of big cities younger in the coming years.
“It’s fascinating to watch some of the predictions from our last report continue to unfold,” said Joe Muratore, co-founder and co-CEO of Graceada Partners. “Really, we are shedding light on incremental changes amplified by a global pandemic. The outpost economy as a phenomenon is not a temporary glitch in the system, it is effectively the new standard for our economy and our lifestyle as a society.”
As more companies embrace a kind of forever hybrid model, more skilled professionals with the option to work remote are choosing to move to mid-sized cities a few hours from major hubs like San Francisco. It is a trend many cities in California’s Central Valley are already witnessing. According to the report, this will cause an uptick in the value of single-family build-to-rent homes in secondary markets like these, creating a opportunity for developers and real estate investors alike.
The freedoms of an untethered workplace are also inspiring some to venture out on their own and launch a business.
"Some of the most impressive data we came across related to the staggering increase in U.S. business applications since the pandemic started,” added Swehla. “Millions of entrepreneurs file for tax ID numbers to be their own boss over the past year. We’re witnessing one of the most ambitious entrepreneurial cycles in the history of our economy—a kind of ‘gigitized economy,’ unfolding in front of our eyes.”
To access the full report, visit: graceadapartners.com/5-ways-the-outpost-economy-is-changing-americas-landscape-today.
ABOUT GRACEADA PARTNERS
Graceada Partners is a California-based real estate private equity firm focused on institutionalizing value-add investing in secondary & tertiary markets. Founded in 2008, the firm has $0.5 billion AUM and employs a vertically integrated team of 52 professionals to source, capitalize, manage, renovate, lease and sell properties.
The firm's leadership team has decades of combined experience adding value to over $10 billion in assets across office, retail, multifamily and industrial properties. Born in 2008 in the heart of the Global Financial Crisis, Graceada Partners is a seasoned expert with looming economic uncertainties, which has allowed the firm to turn market dislocation into successful investments.
Learn more at graceadapartners.com.
GRACEADA CONTACT
Graceada Partners
Ryan Swehla
209-576-2240
ryan@graceadapartners.com
MEDIA CONTACT
Bob Spoerl
Bear Icebox Communications
773-453-2444
bob@bearicebox.com