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AFIRE Survey: Can Strong U.S. CRE Fundamentals Outweigh External Risks?
Global investors generally remain confident in a strong U.S. economy, solid real estate market fundamentals, and continued capital inflow to U.S. real estate, according to a new survey of global investors focused on institutional real estate in the United States. AFIRE’s 2019 International Investor Survey notes, at the same time, respondents are paying close attention to potential near-term risks such as changing interest rates, global political and policy concerns, and the potential long-term implications of climate change.
AFIRE’s Gunnar Branson says, “Commercial real estate continues to perform well and is an important part of any long-term investment portfolio strategy. The fact that U.S. commercial real estate has attracted historically high levels of capital from institutions around the world in the last few years is a strong vote of confidence in the long-term performance of commercial property in U.S. cities.”
Among the key findings include:
– Overall investment climate remains balanced, reflecting strong economies and solid market fundamentals.
– Multifamily and industrial asset classes are strongly favored by investors for increased exposure, with 71% and 79% in favor respectively.
– Investors rank New York as the leading global city for most stable and secure real estate market, and second for capital appreciation. London ranked first for capital appreciation, with Berlin third. Boston, Frankfurt, Los Angeles and Seattle are tied for fourth.
– Eighty three percent of investors state climate change will affect their real estate portfolio strategies in the next 10 years.
Top Global Cities Ranked by Wish to Increase Real Estate Exposure
1. New York
2. Boston
3. Seattle
4. Berlin
5. San Francisco
Top Global Cities by Wish to Reduce Real Estate Exposure
1. London
2. New York
3. San Francisco
4. Chicago
5. Washington D.C.
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- ◦Sale/Acquisition
