According to Jones Lang LaSalle, overseas investors put $384 million into the commercial real estate market in Boston during the second quarter. This ranks Boston 9th overall in US cities attracting foreign capital to real estate (WSJ).
This is fantastic news for Boston, which is experiencing growth in foreign direct investment in commercial real estate (FDI). In comparison, The World Bank has reported that since 2008, total FDI has declined. In 2008, total FDI, which is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments was at 310,093,000,000. Today, that number has shrunk to 227,865,000,000. However, Boston’s real estate market has fared well in comparison to national FDI (The World Bank).
Furthermore, Rob Hielscher, managing director of capital markets at Jones Lang LaSalle, says that investors are looking for “gateway” markets. Characteristics of a “gateway” market include: thriving economies, airports, seaports, and cities that are hubs for international travelers (WSJ).
Contact: dfayngor@abgrealty.net