Overseas Investors Making Waves in U.S. CRE Market
Foreign investors have found a stable commercial real estate market to pursue: Downtown Washington, D.C., office buildings. Washington’s commercial real estate has bounced back from the recession more quickly than other metropolitan areas of the country, thanks to stimulus spending measures from the federal government, and overseas investors are taking advantage of the opportunity.
According to real estate services firm Jones Lang LaSalle, nearly $1.9 billion in Washington office properties has either been purchased or is under contract so far this year. Particularly Korea, China, Germany, and Saudi Arabia have shown interest in the market, looking mainly for fully leased office buildings downtown. One of Israel’s largest real estate investment companies has a $300 million stake in one property that it’s acquiring and counts a mix of 20 other commercial real estate properties in the downtown area as part of its portfolio.
Commercial real estate experts predict that as these deals strengthen the D.C. economy, it’ll fuel even more interest. Meanwhile, there’s a stark contrast with Washington suburbs, which are still struggling as shopping centers and buildings experience rising vacancies.
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