Comments by:
Robert Bach
Senior VP, research and client services
Grubb & Ellis Co.
Chicago

It's no surprise that the US leads the target-investmentroster for 2007, with 46% of our Feedback Poll-takers checking offhomeland buys as their preference. Asia came in second--but adistant second--at 16%, and this poll was taken just as news wasspreading that the Chinese government plans to hinder foreigninvestment flows. Runners-up in the poll, in descending order ofinterest, were Mexico, Europe and Canada. Commentator Bob Bach saysthat while respondents might be giving Europe short shrift, they'reotherwise spot on. Let him explain:

"International capital will go to all of those markets, andcapital from all those markets will be coming to the US. There'sjust a lot of capital flying around the globe right now in alldirections as investors seek diversification, yield and upsidegrowth potential. There is a worldwide shortage ofinvestment-worthy product, and that has prompted investors to lookeverywhere. "If I had to rank, I would put Europe first, Asiasecond, Mexico third and Canada fourth. Europe is huge, with arange of investment choices from institutional, mostly in WesternEurope, to opportunistic in the former Soviet states and the Balticregion. Those are more difficult markets to invest in, and lessdeveloped, but for opportunity capital they present some goodlocations. Additional European opportunities will be createdthrough the introduction of REITs in the UK and Germany in 2007 anda growing willingness of corporations to shed at least some oftheir owned real estate.