Smaller Metros On The Rise: Why Corporate Real Estate Leaders Are Choosing Secondary Cities


Smaller Metros On The Rise: Why Corporate Real Estate Leaders Are Choosing Secondary Cities


For companies considering expansion or relocation, smaller metros — often called secondary cities — are increasingly landing on the shortlist.

Corporate real estate strategy has entered a new phase. Expansion decisions are no longer driven by brand prestige or default gateway markets. Today’s environment demands cost discipline, workforce stability, operational resilience, and long-term flexibility.

For companies considering expansion or relocation, smaller metros — often called secondary cities — are increasingly landing on the shortlist. Not as compromises. As competitive, strategic options.

Why The Shift Is Happening

Over the last several years, three forces have converged:

  •     Sustained cost pressure
  •     Evolving workforce expectations
  •     Increased operational risk awareness
Secondary cities often offer:
  •     Lower Class A office and industrial lease rates
  •     Competitive wage structures with slower escalation
  •     More affordable employee housing
  •     Lower congestion-related productivity loss

   ...more

Leo`s notes: READ THIS! As corporate expansion shifts toward secondary metros like Madison, Boise, and Greenville, housing affordability is emerging as a decisive competitive factor. Even within our state, smaller Wisconsin communities will attack companies not just just based on tax climate and infrastructure, but whether employees can afford to live near work...

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- - Volume: 26 - WEEK: 9 Date: 2/23/2026 11:00:38 AM -