As part of a series for 2012 year in review, here are a view insights into how the world percieves the US Commercial Real Estate market.
While many of us in the US have experienced equity or cash flow challeneges on either the residential or commercial side because of the “‘Financial Tsunami” of 2008 and the subsequent “Great Recession”, the past two years have showed slow steady gains in employment and property values across the country in both sectors.
Many experts see Commercial property investment as less volatile than the stock market, and providing yields above the fixed income markets,
in addtion to providing some tax advantages. Foreigners when they survey the globe for places to get return on their capital consistently see opportunity here in the US.
This article from Bloomberg talks about an investment firm in Norway that will take substantial positions in the US this year – 11 billion dollars worth. This is a clear indication that sentiments expressed in a survey taken late in 2011 are still very stongly felt:
The United States remains the best option for real estate investments this year according to the 2012 annual survey of the members of the Association of Foreign Investors in Real Estate (AFIRE).
The survey, carried out in Q4 2011 discovered that around 60% of respondents, which together hold around $338 billion of real estate in the USA alone, plan to increase their investment in US real estate in 2012, highlighting that investors still regard the ‘land of the free’ as one of the most stable and secure global markets.
While we have our work list of problems to deal with in relation to the economy, federal budget issues, and tax policy, we still have superior infastructure, education systems and investment policies and systems. Quality commercial property opportunities will be presenting themselves all through 2013.