The US is a top landing padfor global investment capital. Thanks to a strong economy anddollar, the US is the top safe haven for investors as well as amarket with strong yield potential. This year, foreign capital wasamong the most active investment pools, and in 2020, foreigncapital activity is expected to remain a top driver of investmentvolumes.

"Overseas investors are another bucket of capital that layerinto the pool. Interest rates overseas are negative in a lot of theprimary countries, and investors are yield starved," MikeLongo, SVP at CBRE, tells GlobeSt.com."The US is perceived to be the number one safe haven globally and aplace with more yield potential. With the influx of global capitaland the US dollar as strong as it is, capital is really attractiveto real estate as a safe bet that offers some yield premium. Ithink that you will continue to see that. As a result, we willcontinue to keep compression on cap rates and the best assets.Global capital is generally interested in the best markets and themost stable instruments."

The US commercial real estate market in particular is anattractive option for yield-hungry foreign capital, particularlystaked up against current interest global interest rates. "If youare a German trader with a pension fund that you are paying a pointon, for example, that is still a spread above the Euro treasury,"Longo says. "If you combine real estate and you can clip a 4% or 5%coupon, that is a really appealing alternative."