6
May | June | 2015 Commercial Investment Real Estate
selensergen/Thinkstock
Source: Marcus & Millichap
Offi ce Investment Opportunities
Markets where asset prices remain far below peak prices
TREND S
MARK E T
"The Q1 2015
Index dropped
slightly to (a still
high) 68 [out of
100]; optimism
is driven by a
growing economy
and improving
job prospects,
while current
fundamentals and
lender discipline
distinguish this
market from
the last cycle's
peak."
— T e Real Estate Roundtable
Sentiment Index
Foreign Capital
Buys Offi ces
In 2014, foreign capital was particularly focused on of ce assets, purchasing $17 billion
of U.S. of ce properties, according to CBRE. T at amount represents 45 percent of
last year's foreign investment in U.S. commercial real estate. More than 80 percent of
foreign of ce investment went toward CBD properties, with New York and Boston being
the favored locations. Canada, Norway, and Hong Kong were the largest sources of
international investment capital in the U.S., which is expected to continue this year. "T e
U.S. of ce market remains a safe haven for foreign investors looking to make their way
into the U.S. In 2015, we anticipate total of ce investment will rise roughly 15 percent,"
said Jeanette Rice, CBRE's Americas head of investment research.
i
In 201 4 In 2014
of U.S. o of U.S. o
l ast y ea last yea
f orei g n foreign
t he fav o the favo
interna t internat
U.S. o f
into t he
said J ea
Las Vegas Sacramento,
Calif.
Riverside-San
Bernardino, Calif.
% below pre-recession peak
59 52 48
Top 3 Markets