U.S. Benefiting from ‘Being a Safe Haven’
Minneapolis has been attracting international attention from foreign investors who are looking for attractive commercial real estate assets. CoStar’s Mark Heschmeyer writes in a recent article(see below) that while New York, Washington, and San Francisco have traditionally been that first choice for foreign investors, cities like Minneapolis are now being viewed as attractive alternatives.
Global investor commercial real estate purchasing activity picked up in the second quarter with total market volumes increasing 24% from the first quarter to $108 billion, according to data collected from more than 60 countries by Jones Lang LaSalle Capital Markets Research in London.
This level of investment reverses the slight dip in activity recorded in the first quarter when volumes reached $87 billion.
REITs and unlisted funds were the second quarter’s biggest net buyers of property.
London remains the world’s most sought-after location, according to the report, with the United States moving back towards the $40 billion transactions mark in the second quarter, with 35% of deals involving cross-border parties.
While New York, San Francisco and Washington DC have long topped the target list for foreign investors, a number of second-tier U.S. cities have entered the Top 10 list for cross-border purchases into the United States, including Miami, Minneapolis and Phoenix.