U.S. Lands Top Spots On Commercial Real Estate Investment List
- Jan 28, 2008
Washington, D.C.–For the first time, two U.S. cities hold the top two spots on the list of global commercial real estate investors’ preferred cities, according to an Association of Foreign Investors in Real Estate (AFIRE) survey released Monday.New York and Washington ranked No. 1 and 2 on the list. Survey respondents said investing in commercial real estate in the U.S. was easier in 2007 because the credit collapse eliminated investors who used cheap debt to buy commercial properties, the Guardian reports.The Washington, D.C.-based group said global property investors still overwhelmingly prefer U.S. commercial real estate, despite the fact China is becoming a more popular choice. The U.S. was cited as having the best chance for capital appreciation; however, its lead over China fell to less than 5 percentage points last year, compared to 27 points in 2005.In addition, the annual report, which tracks institutional investor interest, showed retail property was more popular than office space last year.The survey’s 200 respondents said they plan to spend an average of $1.69 billion this year on real estate–a 20 percent increase from 2007’s $1.39 billion.