A Global Bite of the Big Apple

by / Friday, 04 October 2013 / Published in iCORE, Industry Spotlight, International RE

Although international investment in commercial real estate has risen the past 12 quarters in a row, this is a continuing trend for foreign investors.

According to Genesis Capital, investors are vying for a bite of New York City and other large U.S. metro areas, with Manhattan clearly the main course.

The world is taking a bite out of the Big Apple.

Europeans lead investors in numbers, as they seek a safe haven from currency issues and debts in the Euro Zone. March 2012 brought the 12 month track period to a close with an increase of 24 percent.

The bulk of the investment? Commercial real estate.

Only 9 percent of residential real estate sales come from foreign buyers.

The introduction of private funds along with real estate investment trusts (REITs) has caused this surge in the buying frenzy.

The 10 Best REITs for 2013 list by Street Ratings includes PS Business Parks and Vornado Realty Trust.

Despite the Big Apple’s appeal to foreign real estate investors, European cities still attract a much greater share of the cross-border action.

Some of the top foreign buyers, in terms of total dollars invested, includes Brazil’s Safra Group, China Investment Corp. and Kuwait-based investment entity Fosterlane Management Corp., according to Real Capital Analytics.

“It’s definitely picking up,” said Dan Fasulo, managing director of Real Capital Analytics. “Many foreign investors have been bidding.”