The Boston Metro stands among the top 3 U.S. markets for foreign investment in commercial real estate, according to a recent article published by CoStar. New York City and Los Angeles stand in first and second position, respectively. The rankings are based on the latest annual survey of overseas investors, conducted by the Association of Foreign Investors in Real Estate.
The survey confirmed that the United States remains the destination of choice for foreign real estate capital. About 95% of respondents said they planned to increase or maintain their level of U.S. investment. And despite the raucous political climate of recent months, 66% of foreign investors said their sentiment was unchanged, or more optimistic, about U.S. real estate.
This doesn’t mean there aren’t any brakes on the train. Uncertainty over U.S. policies, along with rising interest rates, have global investors acting with caution. They are being very choosy about the type of properties and locations that they add to their portfolio.
According to the survey, industrial property and multifamily residential property hold the most appeal to global investors. Hotels are the least desired property type.
Major U.S. Metros favored by global investors include New York City, Los Angeles, Boston, Seattle and San Francisco. Investors are also eyeing smaller U.S. markets such as Nashville, Portland, Charlotte, San Antonio, Pittsburgh and Madison, WI.
Overall, investors are optimistic about U.S. commercial real estate, based on the growth of our economy and the condition of our job market. As long as economic and demographic trends remain positive, foreign capital will continue to seek haven in U.S. property.
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