NEW YORK CITY-Those seeking foreign capital may soon be in luck, according to Brookfield Financial. The firm is reporting that—despite a recent dip in foreign capital infusion into the New York real estate market—the declining trend should turn around by year-end because, “interest from investors across the globe remains high,” according to the newly released Brookfield Financial “Second Quarter I.Q. Office Market Observations” report.
Foreign capital has accounted for almost $11 billion of investment in Manhattan office real estate since the beginning of 2012, the report states. However as of the end the second quarter of this year, investments have decreased more than 26% year-over-year based on a four quarter rolling volume, according to data from Real Capital Analytics.
This could give investors pause, but Brookfield says it has received “on-the ground feedback from the collaborative Brookfield Financial partner offices worldwide—which includes locations in Canada, UK, Germany, Australia, Brazil, India and China,” which shows strong demand for New York commercial real estate from international investors. As a result, Brookfield believes the recent slide will change course and veer upwards during the last six months of the year.
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