The Rent Roll with Jay Parsons EP#60 Anne Olson | Overlooked Tertiary Markets
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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Tertiary Markets Outpaced Majors
- Tertiary markets have averaged stronger rent growth than major markets across all US regions over the past five years.
- Less new supply in smaller markets amplified rent gains and outperformance during the cycle.
Top Rent Growth Is Largely Tertiary
- Sixteen of the top 20 markets for five-year rent growth are tertiary markets, with rates of 6–8% annually.
- Many top performers had very little new supply added over those five years.
Capital Is Shifting Toward Smaller Markets
- Capital has flowed more into tertiary markets, raising their share of national apartment sales to roughly 21–24% recently.
- Regional investors and price pressure in major markets helped redirect capital into smaller, nearby markets.