Record prices and falling yields from offices and trophy properties in New York, Chicago, Washington and San Francisco have sent Sydney-based Record Realty and Macquarie Bank to markets like Pittsburgh and Mineral Wells where initial returns are about 45 percent higher.
International financial capital is seeking greater returns far from the global migration winners. I would characterize such money flows as Flat World bets. While the Spiky World dominates the current landscape, opportunity is trending towards the shrinking cities and the nearby hinterlands.
Pittsburgh shouldn't bide its time, but the worm is turning.
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