According to real estate broker Cushman & Wakefield, New York City has regained its spot as the most sought-after city for commercial real estate investment and development by foreign entities. New York dethroned London, which previously held the top spot.
Cushman & Wakefield, which has offices here in NYC, publishes an annual survey of commercial real estate investment activity throughout the world to determine which cities are attracting the most foreign capital. This most recent survey covered the 12 months prior to June 30.
During that period, commercial real estate investment worldwide totaled $1.35 trillion. The top 25 cities accounted for 53.3 percent of all spending in commercial real estate. That's a slight increase over the previous year, when 52.7 percent of commercial real estate capital was in those cities.
The survey found that more foreign investment was made in the Americas and Asia than in Europe. Nine of the top 25 cities on the list are in North America. Six are in Asia and the remaining 10 are in the Middle East, Europe and Africa.
London moved down to third place this year, after New York and Los Angeles. The other U.S. cities on the list are San Francisco, Washington, D.C., Boston, Chicago and Dallas. Atlanta dropped out of the top ten, down to twelfth. Among foreign cities, besides London, Paris and Tokyo made the top ten.
The increased interest in New York commercial real estate by foreign investors is obviously good news for owners of commercial property. However, it's essential to have experienced legal advisors on your team as you negotiate these deals to help avoid regulatory issues that can be costly and inconvenient.
Source: Pensions & Investments, "New York replaces London as top target for foreign real estate capital -- survey," Arleen Jacobius, Oct. 04, 2016