Driven by an overstated sense of risk aversion stemming from a crisis-hangover, investors continue to flock to core assets in primary markets with little notice of other investments.

A recent report by Siguler Guff & Co. titled A Historic Opportunity in Distressed Real Estate highlights the openings in commercial real estate that current investor attitudes are creating, particularly in secondary markets.

According to the report, 75 percent of the equity raised during the past few years, both in REITs and commingled funds, has been invested in core-focused strategies. But these heavily favored primary markets have already regained 70 percent of the value lost during the crisis, compared with the rest of the country where only one-third of lost value has been regained. A core buyer is paying a heavy mark-up for perceived safety, says the report, specifically within primar