Four Global Markets Converge in a Competition for Cross-Border Capital
Crain's New York Business reports: Aptly summarizing Real Capital Analytics’ (RCA) third-quarter Global Capital Trends, Crain’s New York Business stated in a recent article that, “The gap between the performance of the real estate market in New York and that of three other major markets is narrowing, even as it widens with the nation as a whole.”
Crain’s was referring to findings presented by RCA in an article entitled “The Fabulous Four: London, Paris, New York, Washington, DC. In this piece, RCA described the growing similarity of four of the largest global markets for commercial real estate investors. Though they have always shared a common group of investors, the recent convergence of cap rates and pricing that buyers and sellers can expect on properties in these four markets has extended as these markets have gained momentum. In fact, these markets have become more similar to each other than they have individually with other top markets in their respective domestic markets. In other words, cap rates on properties in New York are more akin to those being posted in Paris than to comparable properties in other US cities, such as Chicago or Los Angeles.
As the world emerges piecemeal from the global property downturn, this trend is becoming the new norm. Global investors, including a rising community of cross-border investors, are increasingly able to shop around for the highest yields. Yet investors in this class are also looking for security, and these four markets are currently offering a viable compromise.
For more on these Fabulous Four markets, as well as additional global analysis, please see the full article on Crain’s New York Business’ site and RCA’s most recent Global Capital Trends.
View the full article on Crain's New York Business: Four Global Markets Converge in a Competition for Cross-Border Capital
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Posted by: Nina Turner