Real estate industry will always be appealing to many investors. Globally, foreign investors are particularly checking on commercial real estate as it is believed to have less risk.
The Street reports that the U.S commercial real estate will be drawing more foreign investors. How certain this could be? According to the survey conducted, half of the respondents from across the globe would still want to invest in real estate industry.
It is also reported that "the Colliers survey found that 31% of Middle Eastern investors will be investing in the Americas, as will 27% of investors from continental Europe and 24% of those investing from Asia." There is also denying that commercial real estate has remained strong for the past years.
According to RealtyBiz News, experts have forecasted a modest growth for commercial real estate this year. Based also from the new research conducted by National Association of Realtors (NAR) and Situs Real Estate Research Corp. (RERC), CRE industry is "unlikely to be negatively affected by any domestic or global economic problems."
Report states that the growth of commercial real estate activity is driven largely by "stable leading demand and steady jobs growth in the country."But it is also mentioned that property values of CRE including its price grain will remain flat in 2016 as it has moved past the 2007 peaks in numerous major markets.
As mentioned by Situs RERC president Ken Riggs, commercial real estate becomes an attractive investment due to steady prices and low interest rates. "Looking into 2016, the commercial real estate market should moderate, which could stabilize prices," Riggs said.
Now, as stated in the report, "it's expected that vacancies will see a slight decline this year, though not in the apartment sector, which is expected to see a modest increase due to the number of new projects being completed this year."
Say something about the U.S commercial real estate being the target of foreign investors?
