Commercial Real Estate Market Attracts Foreign Investors
Things continue to look bright for the U.S. commercial real estate market. A fact that is attracting the attention of many foreign investors who continue to purchase real estate assets in the U.S. Last year alone, foreign investors poured over $20B into U.S. commercial real estate. Commercial property investments accounted for more than $180 billion — roughly 10%– in foreign direct investment in U.S. assets in 2006.
Analysts are projecting that even more money will pour into the sector in 2007. According to a recent Reuter’s story, a survey by the Foreign Investors in Real Estate (AFIRE) found that a majority of their members plan to increase U.S. acquisitions by an average of 53% this year. AFIRE’s members have about $600 billion in properties under management globally, and 30 percent of that, about $185 billion, are in the United States.