have become the largest cross-border
investors in this country’s property markets this year and are expected to continue to do so for the next few years.
Most cross-border institutional funds
choose to invest in just a small clutch
of gateway cities. Last year, the highest volumes of investment went to New
York, Boston, Washington D.C., Los Angeles, San Francisco, and Chicago, reports Real Capital Analytics. Other cities
popular with foreign investors include
Seattle, Austin, Houston, and Miami.
Professional Report decided to check-in
A GATEWAY CITY
with commercial real estate profession-
als in selected markets around the coun-
try to see where the action was and if any
SIOR members were getting any of that
Boston is a unique city in one impor-
tant regard: a very high concentration
of students attend universities in the
city’s metro area. Indeed, some 200,000
college students attend institutions of
higher learning from Harvard and MIT
to Boston College and Northeastern. Just
under 25 percent of Boston’s university
students are now foreigners, some of
which will end up living and investing in
Boston real estate or returning home, but
at some point in the future come back to
Boston to invest.
“A lot of students are from China and the
Pacific Rim, and families of the students
are buying high-end condominiums and
other residences as a way to move money
out of Asia and to the United States,” reports Arlon Brown, SIOR, a senior vice
president with the Parsons Commercial
Group Inc., in Framingham, Mass. “So,
there has been tremendous growth in the
Boston market fueled by education.”
The SIOR Foundation is a 501 (c) ( 3) not-for-profit organization.
All contributions are tax-deductible to the extent of the law.
Promoting and supporting initiatives that educate, enhance, and expand
the commercial real estate community.
SIX TIPS FOR WORKING WITH
FOREIGN INVESTORS FOR THE
By John “Mac” Hamilton, SIOR, CCIM, CPM,
president of Hamilton Real Estate Inc.
1) Be straight with foreign investors so that you can
develop a relationship built on trust.
2) Share with foreign investors your knowledge of
the market so they can understand and appreciate
the market in which they are looking to deal.
3) Make sure you stay in communication when
they are not in town and even when they are. They
need to know their money is being dealt with
continuously and they are not being disregarded
when they are not
4) Have an accurate and honest accounting of
how their properties are performing and that you
give them narrative descriptions as to what has
happened when a problem comes up; foreign
investors need to know the why, what plans are in
place to remedy the problem, and what the remedy
5) Make sure you regularly distribute cash flow
checks to foreign investors so they gain increasing
confidence in your ability to work with them.
6) Don’t generalize. Different cultures have different
motivations to invest in the United States.
By Steve Bergsman