High prices and lower returns for commercial property in major urban centers like San Francisco are prompting major investors increasingly turn their dollars toward suburban markets, according to Andrew Nelson, chief economist with real estate services company Colliers International.
A nearby suburban market like Marin County has been benefiting from this.
“It’s not like we’re seeing a wholesale shift where people were investing in cities and now they’re going into suburbs,” Nelson said. “Collectively it adds up to a fair number of dollars, but in percentages it is material but not a huge number. We’re talking about a few-percent difference each year.”