In the last two years, foreign investment activity in the US has spiked, according to new data from CBRE. Since 2010, foreign capital has acquired $61 billion worth of real estate in US markets with activity increasing significantly in the last two years. Thanks to two healthy ports, a large population and growing infrastructure, Los Angeles has captured more foreign capital than any other US city.

“Los Angeles is a gateway city, with the ports of LA and Long Beach. In addition, this region boasts a tremendous population base, which adds to its great appeal,” Barbara Emmons-Perrier, vice chairman at CBRE, tells GlobeSt.com. “This combination plus its relative value as compared with other gateway regions has made it one of the most desired markets in the U.S. Foreign investors want to be in prime markets that are recognizable and safe.”

Capital from Asia continues to dominate foreign investment in Los Angeles, however, Canada and Europe are also major players in the L.A. market. “We see foreign investment increasing as the U.S. continues to be perceived as a safe harbor, given our market fundamentals are so strong,” says Emmons-Perrier. “This in turn has attracted capital from all over the world. Asia is still the biggest player in terms of investments into the region. In addition to money from that part of the world, we also have seen an influx of investments from Canada, Europe, and the Middle East.” L.A. isn't the only city seeing a boost in foreign capital. Western US markets sit at the top of the list for foreign buyers. CBRE's research showed that San Francisco, Seattle, Phoenix and Denver were among the top markets for foreign investment, as well as Detroit, Miami and Minneapolis.

Industrial has become the choice asset class for these investors, making the two ports—Los Angeles and Long Beach—key characteristics in attracting foreign capital to Los Angeles. “Industrial logistics have become one of the most favored assets for foreign investors,” Emmons-Perrier says. “This is driven by the ever-increasing demand and need for e-commerce coupled with extremely strong market conditions in this segment and the region. Prior to industrial, foreign investors tended to focus on trophy hospitality and office buildings, segments that can still offer attractive opportunities, but industrial is the new darling.”

Emmons-Perrier's team is traveling to Asian and Middle Eastern markets regularly to meet with potential buyers, and she expects foreign capital to continue to look for opportunities in L.A. “The outlook for foreign investment in this region is very strong,” she explains. “Our team has been making several trips to Asia and the Middle East to have direct access to these buyers, and the interest level continues to go up and up.”

Instant Insights /

Los Angeles Claims Top Spot for Foreign Investment

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