"The number of inquiries [and closed transactions] on behalf ofwell-capitalized foreign investors seeking US commercial realestate will continue to increase over the next 12 to 18 months. Itis still early in the cycle, but it's only a matter of time beforemore deals like SL Green's sale of a partial interest at 485Lexington Ave. to a group that included Israeli investors begin tooccur. The sale of AIG's headquarters' office in lower Manhattanearlier this summer was another indication of foreign-basedinterest in Manhattan real estate."

"Unlike most of our competitors, we are active participants inthis trend. Savills US, which is part of the London-based globalreal estate services firm Savills plc with 200 offices throughoutthe world, is working closely with a number of offshore groups thatare actively seeking opportunities here."

"Why are these clients, in addition to other foreign investorgroups, looking to deploy capital into the US commercial realestate market? Foreign investors favor the US real estate marketfor different reasons. Asian investors can utilize lower borrowingcosts from their home banks which enabled them to allocateinexpensive and accretive capital into the US. These groups alsosee US real estate as a hedge against potential inflation and/orvolatile changes in their currency positions."