CHICAGO—Foreign investors have long flocked to the top gatewaymarkets like New York, San Francisco, and Washington, DC, butincreasingly these individuals and institutions are poking aroundsecondary markets throughout the US, a reflection both of theAmerican economy's strength and the transparency provided by thecountry's real estate laws.

“We've had a great deal of foreign investment for decades,”Bruce Miller, the Chicago-based internationaldirector for JLL, tells GlobeSt.com, and manyfactors can turn the spigot on or off, including things likeadjustments in currency exchange rates. But the way it typicallyworks is at the beginning of an economic recovery, money flows tothose gateway cities, but now that the recovery has taken hold,many foreigners have found the pricing there too aggressive andhave shifted their focus to cities like Chicago, Houston andSeattle.

“Secondary is a very relative word,” Miller admits, and someobservers may not consider those cities truly secondary. Still, “weare starting to see South Korean investors coming into Chicago,”and that represents a big shift. In 2011, for example, a group ofHong Kong and South Korean investors bought the 57-story 70 W.Madison for about $344 million. The group now has the building upfor sale. And Miller led the sales team that handled the 2013purchase by Mirae Asset Global Investments, aSouth Korean firm, of the 31-story 225 W. Wacker for $218 million.Also in 2013, a group that included South Korean investors boughtthe 50-story 161 N. Clark for $348 million.