IRVINE, CA-The buyer pool for hard assets in general is growing and the retail property sector is at the forefront of this growth. Historically, insurance companies, pension funds, state employee funds, life insurance companies, and publicly traded REITs were the main players in the investment landscape. However, that has changed. Investors want to purchase tangible assets as stocks and other non-tangible investments are constantly in a state of uncertainty.

Who are these buyers and what does it mean for commercial real estate?

The first are overseas investors. In the recent past, the investment appetite for these capital-rich buyers – the majority of which are from Asia – were only interested in buying stabilized assets. But as time has progressed and the U.S. market comes into recovery mode, these principals are also buying value-add opportunities as long as the assets are situated in “gateway locations” such as port cities that feature a diverse cultural demographic as well as high population numbers. Many of these international buyers are represented by local principals – either individuals or companies – who are now living in the United States and have relationships with overseas capital. With instability in foreign markets, U.S. property is a natural, stable investment.