Search
 

Foreign Funds Still More Just a Trickle

Conventional thinking is that foreign investors will shore up, to a certain extent, the US capital markets. But is that actually happening?

By Erika Morphy | Updated on March 04, 2008

Recently released figures from the Association of Foreign Investors in Real Estate were heartening to a domestic real estate community worried about a drop-off in capital funding. According to AFIRE’s 16th annual survey released at the end of January (http://www.globest.com/news/1081_1081/washington/167800-1.html), New York City and Washington, DC are the two top global cities for foreign investment — the first time since the global city category was added to the survey that a US city has taken first and second spots. London had tied for second place with Washington, after dropping from its number one slot in 2006, while the District rose from No. 4 to No. 2. New York City rose one spot to the top slot, from its previous position of No. 2.

The news, though, was not much too much of a surprise to savvy insiders; after all, the conventional wisdom has been that foreign investors would shore up the dwindling liquidity in the US, thanks to the dollar’s value and overall fundamentals. AFIRE’ figures were merely confirmation of that expected trend.

Except that it isn’t happening – at least not in the volumes anticipated. According to speakers at last week’s Washington DC RealShare Conference, the flood of capital from foreign sources has been, anecdotally at least, more of a trickle. “We just haven’t seen it,” said Oliver Carr, president and CEO of Carr Properties. Right now the company is looking to raise capital for a discretionary fund, he said, and he expects foreign investment to comprise 20% to 30% of that fund.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.