The CCIM Institute published a good article titled “Small(er) Markets, Big Opportunities | CCIM Institute” that talks about how investors are moving away from core markets to capitalize on properties in the secondary and tiertary markets. 

Investment property sales have been historically limited in Lincoln due to a high amount of local ownership and owners focusing on long-term investment strategies rather than thinking about a hold period.  However, in 2011, the Lincoln market experienced an increase in out-of-state private investment with several significant office sales occurring that reached more than $16 million in transaction volume. A significant sale for the city was the Federal Trust Building, a 12-story downtown office building that sold for $5.775 million or $92 per square-foot. Lincoln’s largest transaction was the sale of the three former TierOne Bank buildings and a 265-stall parking garage to Woodbury Strategic Partners at a price of $9.3 million. Both properties were bought by out-of-state investors with the intent of long-term ownership. Lincoln’s stable economy and the construction boom from university and government-driven projects has provided added incentive for investors to consider our tertiary market. 

NAI FMA Realty works with institutions, private investors, entrepreneurs and lenders seeking to maximize their real estate position and portfolio strategy on properties ranging from portfolios of owned real estate, to single-tenant net leases, multi-family properties, and corporate headquarters. If you are considering investing in the Lincoln market, contact our investment brokers to gain a thorough understanding of your investment critera and assist you in the planning and due diligence of a transaction.

For more information, contact Richard Meginnis, Tom Graf or Chris Vasek at 402-441-5800.