Foreign Buyers Show No Signs of Slowing

MIAMI—There's no slow down in the influx of foreign buyers in the commercial real estate arena. In fact, foreign investment in the U.S. factored as the third largest reason why confidence levels are increasing in 2013, according to Akerman Senterfitt.

The firm released its fourth annual survey after its U.S. Real Estate Summit. The survey found that 31% of commercial real estate executives believe foreign investors will fund a significant portion of commercial real estate debt and equity in 2013. And 62% believe that the U.S. will see the most Latin American real estate investment from Brazil. Venezuelan investors are expected to be the second most active, at 28%.

Meanwhile, 60% of percent of industry executives believe that foreign investors will contribute largely to the development of multifamily homes. They also predict that U.S. hospitality (30%) and retail (29%) will be among the top active sectors for foreign investment.

According to Richard Millard, chairman and CEO of Trust Hospitality, the condo-hotel market remains alive in top hospitality markets like New York and Miami due to the inflow of cash-laden buyers from Latin America. What's more, with support for expansion of the EB-5 Visa Program from the White House, commercial real estate executives expect foreign investment and development to continue to grow in the near future.

Improved relations abroad has also contributed to increased development in certain sectors across the country, the survey suggests. Dr. Peter Linneman, founding chairman of the Real Estate Department at the Wharton School of the University of Pennsylvania, said the industrial industry has seen an uptick in airport real estate development, as well as infrastructure development among ports and commuter rails due to the dramatic increase of exports and tourism per year.