LOS ANGELES—The US is one of the safest investment markets in the world, if the abundance of foreign capital is any indication. At Allen Matkins View From the Top conference in Beverly Hills, Kevin Shannon, president of West Coast capital markets at NGKF and Devin Peterson, principal of real estate at the Blackstone Group, talked about the high activity from foreign buyers and why it is good news for the US market.
“We continue to see strong interest from Chinese insurance companies, and we see them continue to be very active. If someone asked pre-Brexit where the market would be, no one would have estimated how positive that it has been,” said Peterson. “We are the safest market for people to invest in still.”
Shannon agreed that the presence of foreign capital enormous, adding that they like high quality products in CBD areas. “Foreign capital is abundant and the potential is massive. We used to talk about these guys and now we need these guys. They like CBD, they want to be in Seattle and DTLA. The vast majority of transactions in Seattle have been foreign. In San Francisco, they have also always been a big piece of the pie,” he says
Like Peterson, Shannon thinks that Brexit will only increase foreign capital in the market, because investors will come here for certainty. With Brexit, you will always see more people come here, and especially more Korean capital will come here, but they are debt component buyers,” says Shannon.
In addition to Brexit, Peterson also says that the negative interest rate environment has helped to drive investors here. “Foreign capital is much more active on the better quality product,” he said. “If your options are negative interest rates, and you can buy a commercial real estate asset with rising rents, that is a good option.”
More than 300 of the industry's leading national investors, REITs, banks, private equity firms, asset management firms and other institutions will join us as we explore the market conditions behind the trends at this year's RealShare National Investment & Finance, scheduled for Oct. 5 and 6 at the Roosevelt Hotel in New York City. Learn more.
LOS ANGELES—The US is one of the safest investment markets in the world, if the abundance of foreign capital is any indication. At
“We continue to see strong interest from Chinese insurance companies, and we see them continue to be very active. If someone asked pre-Brexit where the market would be, no one would have estimated how positive that it has been,” said Peterson. “We are the safest market for people to invest in still.”
Shannon agreed that the presence of foreign capital enormous, adding that they like high quality products in CBD areas. “Foreign capital is abundant and the potential is massive. We used to talk about these guys and now we need these guys. They like CBD, they want to be in Seattle and DTLA. The vast majority of transactions in Seattle have been foreign. In San Francisco, they have also always been a big piece of the pie,” he says
Like Peterson, Shannon thinks that Brexit will only increase foreign capital in the market, because investors will come here for certainty. With Brexit, you will always see more people come here, and especially more Korean capital will come here, but they are debt component buyers,” says Shannon.
In addition to Brexit, Peterson also says that the negative interest rate environment has helped to drive investors here. “Foreign capital is much more active on the better quality product,” he said. “If your options are negative interest rates, and you can buy a commercial real estate asset with rising rents, that is a good option.”
More than 300 of the industry's leading national investors, REITs, banks, private equity firms, asset management firms and other institutions will join us as we explore the market conditions behind the trends at this year's RealShare National Investment & Finance, scheduled for Oct. 5 and 6 at the Roosevelt Hotel in
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