3 Reasons International Investors Love U.S. Commercial Real Estate

Commercial real estate is attracting the attention –and capital- of investors from all over the globe. Interest in the U.S. commercial market is driving up prices in major cities and creating intense competition, as well as capital for new development, something that is not necessarily forthcoming from U.S. banks.  Money is coming from high net worth individuals and pension funds, and perhaps most significantly from Sovereign Wealth Funds.

These government treasury funds manage a staggering amount of capital globally. Their value is over $6 trillion, and 60% of those funds are invested in real estate. Of the $8.7 billion that Asian investors spent on commercial real estate in the first quarter of last year, the U.S. market took in 40%.

Many of these large investors favor deals involving multiple properties, since the discount that comes with buying additional properties offers an opportunity for greater returns. Foreign investors have participated in major NYC development projects over the last few years, including the massive tower at 55 Hudson Yards, primarily funded by Japanese firm Mitsui Fudosan.

With about a quarter of all commercial transactions in NYC involving foreign capital, we might well ask: what is behind this intense international participation in our CRE market? Various factors draw foreign investors to U.S. commercial real estate, but chief among them are these three.

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Living Walls are Breathing Life into Urban Real Estate: Here’s How

The most exciting trend in real estate is a growing, living thing – literally. Living walls are at the forefront of today’s most compelling design trends, and there are many reasons for this. You’ll see them at any number of places – high-end shops, trendy spas, upper-crust restaurants and hotels, intimate clubs, and pretty much anywhere looking to add some distinction to their design.

Here we’ll look at some of the benefits, the applications (both residential and commercial), the value that is added by using living walls, and how you – yes, you! – can create one easily, along with some of the best examples of living walls out there.

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REITs in India: Decrypted

Recent actions by Indian regulatory bodies are bringing REITs (Real Estate Investment Trusts) closer to reality. REITs are expected to bring in a landscape change to real estate development in India – most importantly from a corporate governance perspective, enhancing greater participation from institutional players, both global and domestic. The changes will positively affect the real estate industry in India – CRE (commercial real estate), more specifically.

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These are the 5 Most Exciting Neighborhoods for CRE Investment in the USA

The commercial landscape is ever changing, which is one of the things that keep it interesting. As new projects get underway, entire neighborhoods are energized and more new development is spawned.

Many times, all it takes to start a chain reaction is one bright idea that’s hatched at just the right time, when a neighborhood is ripe for rejuvenation. When that happens, investors are excited about being part of the change. The neighborhood becomes a hotspot for investment and further development. Here are some U.S. neighborhoods where change is afoot and opportunities are popping up like mushrooms after the rain.

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These 5 Stats About Foreign Investment in US CRE May Surprise You

real estate

Interest in U.S. properties from international investors has been strong since the financial crisis, and the rate of investment has been accelerating in the last couple of years.  We can see evidence of this in the industry news, and we hear stories from colleagues, but the full scope of foreign investment in American CRE is best demonstrated with a collection of statistics.

Read on for a snapshot of international activity in the market, and the factors that are helping to drive it. They may surprise you –at the very least they are food for thought.

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