The Rent Roll with Jay Parsons EP#60 Anne Olson | Overlooked Tertiary Markets
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Nov 20, 2025 Anne Olson, CEO of Centerspace, shares her journey from a farm upbringing to leading a public REIT in tertiary U.S. markets. She reveals why these smaller markets are outperforming larger ones, highlighting strong demand and low supply. Olson dives into the advantages and challenges of investing in these overlooked areas, addressing misconceptions that lead to undervaluation. She also discusses strategic expansions into growing locations like Salt Lake City and Denver, while maintaining a balanced portfolio. Insights on renter demographics and financial health round out the conversation.
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Cap-Rate Discount Has Narrowed
- The cap-rate discount for tertiary markets shrank from ~60–80 bps pre-COVID to about 40 bps in this cycle.
- Liquidity and perceived risk still vary widely across individual tertiary markets.
Forecasts Favor Many Small Markets
- Oxford Economics forecasts strong population and job growth over the next decade in both large MSAs and many smaller markets.
- Several high-growth tertiary metros (e.g., St. George, Villages, Provo) rank near the top for forecasted expansion.
Counter Illiquidity With Data And Performance
- When investors underweight tertiary exposure, focus on providing reliable transaction and market data to reduce perceived illiquidity.
- Highlight consistent revenue and NOI performance to counter the narrative that smaller markets lack growth stories.