Foreign investment into the US is set to improve dramatically in 2011, according to research by Jones Lang LaSalle.
The real estate services firm said the flow of global capital was heading back into US real estate as foreign investors sought to bulk up the level prime domestic real estate in their portfolios.
Inter-regional investment volumes in the Americas doubled between 2009 and 2010, from $14bn to $31n. According to JLL, while some of this was driven by the domestic market, most was led by inter-regional activity as investors took advantage of a pick-up in activity in the core US markets.
Steve Collins, managing director of JLL’s International Capital Group, said: “We talk to international investors every day and, while most of them have also begun to target Boston, Los Angeles, San Francisco and Chicago, we think that by the end of the year, Seattle, San Diego, Atlanta and Houston will be added to the mix for strategic purchases.”
According to JLL, most of the foreign investment came from global funds. These were followed by individual countries such as Israel, Germany, Canada and South Korea.
Looking into 2011, JLL expects foreign investment to continue and spread into the more secondary markets. It recently closed deals in secondary markets in Atlanta and North Carolina.
james.kenny@estatesgazette.com
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