MIAMI—How are Canadian investors picking their markets? And isthis flood of foreign capital going to dry up after 2014?

| caught up with Mark Stapp,executive director of the Master of Real Estate Development programat the W. P. Carey School of Business at Arizona State University,to get his take on these and other topics related to the invasionfrom the great white north. You can still read part one of thisexclusive interview:Canadian Investors Like These Property Types Best.

| Are there certain geographic areas thatare a stronger focus for Canadian investors? How are Canadianinvestors picking their markets?


Stapp: Strong areas are the Southeast andSouthwest, especially Arizona. In particular, Palm Springs,southern California, Florida, and Arizona are very popular.

| What trend lines are you seeing amongCanadian investors?


Stapp: I see more of the same. I don't see anybig shifts in the short term unless the dollar strengthensconsiderably compared to the loonie and our prices increasesubstantially.

| Is there any downside to the rush fromCanadian investors? Is it creating more competition for US-basedbuyers? Are we getting too dependent on foreigncapital?


Stapp: All investors have helped to stabilizeour property markets. Now, they also create competition for UShomebuyers and have caused prices to escalate fast in some markets.In the commercial segment, they have been opportunity buyers.

| How long do you expect this interestfrom Canadians to last? Is this just a blip on the radar screen ora longer-term strategy?


Stapp: This is a long-term trend that hasexisted for a long time. Given our proximity, ease of travel andclose cultural connections, it's going to continue.

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