Hedging Volatility with Tertiary Markets

Investors looking to diversify their portfolio with non-correlated assets can look to alternative investments, including illiquid real estate. Long-term real estate investments are typically not as affected by short term swings in public markets. When assessing tertiary markets – smaller real estate markets with a population of less than 2 million people – it can be useful to look for markets with core economic driving forces while also having high barriers to new development. These two key factors can be indicators of sustainable demand.