Viewpoints

Opportunity in Second-Tier Malls is Noted

Increased International Capital Inspires CRE Growth

The last couple of years have seen growing participation in the U.S. commercial market by international investors. This can be attributed in part to the relative strength of the U.S economy, and the transparency of transactions here. Foreign investors, including sovereign funds, which have large amounts of capital to park in a safe place, are attracted by low interest rates and favorable spreads. Capital preservation and higher yields are the main draw for international buyers to the U.S. market.

3 Ways Global Urbanization Impacts CRE

The U.S. population saw overall growth of 9.7% in the years between 2000 and 2010, but growth in urban areas was higher, at 12.1%. Urbanization is a significant feature of growth around the world, and has considerable impact on commercial real estate.

How to Appeal to International Clients

To best appeal to international clients, you need to have some understanding of the culture and conditions in the target country. Creating content that is accessible to international prospects may involve setting up a website in the native language, or at least providing a translation feature. It can be very good practice to contract with an agent or representative “on the ground” who can filter and enhance your message to suit local tastes and interests.

Bigger Stakes in US REITs for Foreign Investors

Some of the U.S. restrictions on foreign investment in real estate were considerably eased at the end of 2015. This is likely to boost the already high volume of international CRE transactions in the coming years.