"Middle Eastern investors, whose fortunes can no longer hinge on the spot price of oil, fall into two camps: First, there are those looking for bargains in the top five markets—meaning core assets likely to generate core-plus returns due to a motivated [i.e. distressed] seller. The second category of investor seeks opportunistic [such as 25%-plus IRRs], but is willing to accept a different risk profile. Both camps identify US commercial real estate market as a safe long term investment."

"The private, high net worth investors from abroad are increasingly focusing on US assets again. They are motivated to buy assets directly rather than invest in funds, as many of these investors sustained losses after the high-profile property funds they were invested in stumbled. As a result, many of these investors now view direct investment as a more controlled and less risky option."

"If the sources of foreign capital entering the US real estate market vary, there is one common element: this capital flow will ultimately be deployed as US dollar denominations. The ability to acquire assets directly with cash is empowering in a market that is still credit-constrained, and the US dollar remains the reserve currency of the world. Most of the foreign investors that have closed deals in the US this year have done so with cash--and these groups can deploy additional capital if they find new opportunities that are compelling."

"Investor confidence in the US has benefited by a sense of stability and a belief that our economy's near-term outlook is brightening. Look no further than the equity market rally of the past few months. However, many investors are still uncertain that this rally is sustainable. It is precisely at this point in the cycle that the savviest investors, who will ultimately become known as visionaries, re-enter the market."