A recent article in BusinessWeek discussed the continued interest in U.S. commercial real estate by foregin investors. According to BusinessWeek approximately 5% of the $336 billion spent last year on commercial real estate was by foreign investors. The top player is the Middle East. However, Canada comes in a respectable 4th acquiring $2.57 billion worth of commercial real estate. The U.S. is still seen as a stable market with many opportunities. One noted changing trend is foreign investors willingness to acquire value-added projects. I believe this indicates foregin investors trust in the stability of the U.S. market. Taking on riskier projects indicates their belief that the market itself has less risk and justifies more risk at the property level.
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