NYC Tops London as Favorite Destination for Commercial Property Investment
BusinessWeek reports: For the first time since 2007, New York City beat London as the top destination for commercial property investment after better access to financing stimulated more US transactions, according to a new Cushman & Wakefield report.
Compared with a year earlier, investments grew 166% to $29.7 billion in the NYC area in past the 12 months through August. London commercial property investment increased 2.4% to $27.2 billion, according to the report based on data compiled by information service provider Real Capital Analytics.
The report added that Chicago, New York, Boston and Atlanta made up four of the five fastest growing real estate investment markets by volume. Frankfurt and Germany’s Rhine-Ruhr metro area ranked fourth, with growth of 126%.
A resurgence of the CMBS market in the US in the first half of this year spurred the increase in investment, said Joseph Kelly, director of market analysis at Real Capital Analytics. But that market is now “starting to slow down,” he added. "Distressed debt is a much greater concern in Europe than the US and that’s holding back new funding in the market, particularly for second-tier assets," Kelly said.
Kelly said there has been a “resurgence” in interest in London from US investors. Half of the money spent on property investment in London during the period came from abroad. Maintaining its spot as the number one city for cross-border property investment, London was followed by Paris, New York, Singapore and Beijing.
In a recent report, RCA's preliminary results for Q3’11 showed that transaction volumes globally should be flat to slightly ahead of Q3’10, but will fall short of reaching levels recorded in Q2’11.
View the full article on BusinessWeek: NYC Tops London as Favorite Destination for Commercial Property Investment
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Posted by: Matthew Stone