Cross-Border Real Estate Investment Rebounds

Mortgage Banking, April 2011 | Go to article overview

Cross-Border Real Estate Investment Rebounds


Global cross-border investment increased by 60 percent year-over-year and accounted for 40 percent of all direct commercial real estate (CRE) investments in 2010, according to Chicago-based Jones Lang LaSalle's (JLL's) global capital markets group.

JLL said the proportion of investment, totaling $130 billion (93.7 billion euros) is equal to the boom years of 2006-2007.

"During the downturn, domestic trading held up better globally than cross-border activity as investors focused their attention on familiar markets," said Arthur de Haast, head of the JLL International Capital Group. "In 2010, however, equity-rich investors led the flight to quality assets in core, mature and transparent markets, which has supported the resurgence in cross-border investment volumes over riskier secondary and tertiary domestic markets," added de Haast.

JLL reported inter-regional volumes reached $82 billion in 2010, equal to 2004, which constituted one-fourth of overall global volumes. At its peak in 2007, inter-regional volumes were nearly triple 2010 volumes at $243 billion, and represented more than one-third of overall global volumes.

De Haast said the pick-up in inter-regional activity has proceeded in step with the overall market, suggesting that a significant number of investors are willing to look not only outside of their domestic markets, but outside of their region.

"We expect domestic and cross-border transaction growth to continue in 201 1 as investors move up the risk curve," de Haast said.

Inter-regional investment volumes in the Americas doubled between 2009 and 2010 from $14 billion in 2009 to $31 billion in 2010. JLL said this strong bounce back was not only driven by the domestic market, but was led by U.S. interregional activity, as foreign investors and purchasers took advantage of a pick-up in activity in the core markets to trade. Inter-regional purchasers transacted $5.6 billion in 2009 and $13.37 billion in 2010; inter-regional vendors acted on $7.79 billion in 2009 and $16.77 billion in 2010.

"Foreign investment re-entered the market aggressively in the back half of 2010, and it began targeting just the top two trophy markets: New York and Washington, D.C," said Steve Collins, managing director of the Americas for JLL's International Capital Group. "Now, those gateway cities are almost tapped out and some foreign investors are paying as much as $700 per square feet for prime real estate properties."

JLL reported in 2010 cross-border volumes in Europe and the Middle East reached S72 billion of a total market of $136 billion - a 53 percent increase on 2009, when cross border accounted for $47 billion of $97 billion total European and Middle Eastern volumes.

"Today, the demand is increasing, but there isn't enough quality product to buy in the top two core U. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Cross-Border Real Estate Investment Rebounds
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.