Andrew Chisholm
Managing Director
GRS | Capital & Provincial
[email protected]
London has pushed New York City aside as the number one city for non-domestic-based investors to place their commercial real estate investment dollars, according to AFIRE (Association of Foreign Investors in Real Estate).
London ranked third last year and is now followed by New York, Berlin, Los Angeles and Frankfurt. Though London, New York, and Berlin all switched places, and Los Angeles stayed the same at fourth, compared to last year’s report, Frankfurt made a steep jump from number 13 in 2017’s findings. Meanwhile, San Francisco, which was in the top five globally since 2011, fell all the way to number 11.
Edward Casal, AFIRE’s chairman, said that the sentiment toward London shows that commercial real estate concerns about Brexit have so far been overblown. He said: “London has a number of attributes as a location for investment, including a stable rule of law, transparency, and use of the English language. In addition, a favorable time zone for international business, deep labor pool, and cultural attributes also help.”
When looking solely at the United States, investors surveyed had New York and Los Angeles tied at first place, followed by Seattle; Washington, D.C.; and San Francisco. New York had held sole first place for the prior seven years.
By property type in the United States, industrial came in on top, trailed, in order, by multifamily, office, hotels, and retail. The only change from 2017 was that hotel and retail switched places. This shows that sentiment for the strength of U.S. industrial commercial real estate, which is detailed in this JLL report, is being followed closely by foreign investors.
Keeping with last year, the United States was considered by respondents as the most stable and secure country for investment. Germany, Canada, the United Kingdom and Australia followed, with the last two trading places from last year’s ranking.
When considering emerging countries, Brazil was ranked first, followed by China, India, Mexico, and Colombia.
So, not a whole lot has changed in AFIRE’s annual survey, but London is now clearly the number one global city for investors. And though there has been a lot of activity in the United States in the last 12 months – not all of it considered favorable around the globe – it is still the most favored nation when it comes to commercial real estate investment.
About GRS | Capital & Provincial
With specialist knowledge of building technology and construction, GRS | Capital & Provincial provides extensive coverage throughout the UK, Ireland, and Europe. GRS | Capital & Provincial offers a complete range of services from its UK headquarters in London. These services include Building Services, Condition Surveys, and Preventative Maintenance. Project Consultancy services include Project Management and Monitoring, Contract Administration, CDM Coordination, and Quantity Surveying. Additionally, GRS | Capital & Provincial’s Professional Building Consultancy includes Measured Surveys, Dilapidations, Party Wall, and Reinstatement Cost Assessments.
About GRS Group
GRS Group is a leading provider of commercial real estate (“CRE”) services worldwide. With offices across the United States, Europe, and affiliates around the globe, GRS Group provides local market knowledge with a global perspective for institutional real estate investors, occupiers and lenders worldwide. The GRS Group team has evaluated and advised on over $1 trillion in CRE transactions.
Through the company’s proprietary management process, Global Services Connection, GRS Group delivers an integrated suite of services including Financial Advisory, Transaction Management, Assessment and Title Insurance. We provide a single point of contact, capable of leveraging the GRS Group portfolio of companies and delivering customized solutions to assist our clients in achieving their investment goals.