No matter where in the world you practice real estate, globalization impacts business. To a significant degree international investors view U.S. commercial real estate as a desirable investment. Foreign purchases of U.S.commercial properties are estimated at $24.1 billion in 2012 − up 5 percent from 2011 and up 55 percent from 2010.
Types of markets international buyers appear to focus on:
- Metropolitan Statistical Areas or MSAs that are relatively large in terms of total employment, but with relatively slow employment growth. Examples include Atlanta, Boston, Chicago, Los Angeles, Miami, NewYork, and San Francisco. These MSAs are well known to be major national or regional financial, mercantile,and trade centers.
- MSAs that are relatively large with above median growth in GDP and employment. Examples include Austin, Houston, Denver, San Diego, Seattle, and Washington, D.C. Economic growth has been above average and these metropolitan areas are frequently mentioned in terms of their potential for additional growth.
A Look Into the Furture Economic Growth — Urban Areas at the Forefront
The markets that traditionally attract international investors will likely continue to draw global interest as they are major mercantile centers. However, employment and GDP are significant drivers of real estate demand, and those areas within the US with strong job growth will likely be increasingly attractive.