The Pros and Cons of Investing in Gateway Markets by Christopher Sanz, JD, LLM

Posted on February 02, 2022

Commercial real estate investors have a wide array of choices when it comes to where they put their money, both in terms of asset class and physical location. One way to break down location is by gateway and non-gateway markets.

Gateway real estate markets are metropolitan areas with dense and growing populations, diversified economies, a full range of real estate assets (multi-family, office, retail and industrial) and a well-developed system of transportation connecting the downtown area and to surrounding suburbs and other major metropolitan cities. In the U.S., gateway markets include New York, Los Angles and Chicago, as well as Miami, Houston and Atlanta. Each one is an in-demand market with robust real estate activity, which traditionally has made them safe options for generating stable rental income, maintaining property values and providing access to liquidity that comes with a robust market.

However, with these benefits come high barriers to entry, including higher costs of acquisitions and operations, higher taxes and increased competition for available properties. Additionally, the Covid pandemic has expedited years of trending corporate and consumer migrations away from major cities to secondary and tertiary markets, where economic activity continues to thrive and provide investors with the potential for higher returns on their investable dollars.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email

Menu Title