Commercial property owners looking for some good news got some earlier this month: They should expect a growing number of international investors to sink their money into U.S. commercial buildings in the near future. At least that’s the consensus from Chicago-based DTZ‘s “Money into Property 2013 North America” report.
According to the report, despite economic problems, DTZ ranked U.S. property markets as the most attractive to international investors.
DTZ reported that individuals and companies invested $475 billion in commercial real estate across the globe in 2012. That represents an increase of 3.5 percent from 2011. This includes a 15 percent jump in North America, a strong figure that helped offset a decline in investments in Europe and in Asia Pacific.
John Wickes, head of North American research for DTZ, said that the company’s Fair Value Index for the United States is now at its highest level since 2005. This makes the United States the most attractive target for global investors.
Hans Vrensen, global head of research at DTZ, said that he expects investors to continue putting money into commercial properties in the near future. Part of the reason? Investors are not acting as cautiously today as are commercial lenders. They are no longer focusing as intently on ways to reduce risk, but rather are looking for new investment opportunities to grow their wealth.
“New generations of Asian investors continue to emerge onto the global investment market,” Vrensen said in a written statement. “As risk aversion recedes further, many European and American investors are also expected to return to a more active international diversification strategy in the coming years.”
