“The U.S. has always been a target for foreign capital, but we are finally seeing investors going outside their typical comfort zones, moving further on the risk spectrum and adding retail assets to their portfolios. This shift has increased the price per square foot for retail transactions higher than any other asset class this year, creating stiff competition for trophy assets and an uptick in interest for grocery-anchored strip centers,” said Margaret Caldwell, managing director of JLL's Capital Markets.

Caldwell sees markets that have a growing middle-class, lower barriers to entry and slim competitive set, such as New Jersey, Tampa and Cincinnati, exemplifying how cross-border investment is shifting from its traditional focus.

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On the international brand front, European retailers are especially looking to get a foothold on U.S. soil, and are targeting the diverse consumer base and resilient economies in 19 top-tier retail markets. That's according The New World of Retail report. And New York City has been one of the key beneficiaries.

“Nearly one in five international retailers with U.S. operations has a storefront in New York City because it's the perfect incubator for building brand awareness and testing the waters with a broad consumer base,” says Bob Gibson, vice chairman of JLL here.

But like investment capital, secondary markets are also starting to get interest. “We are starting to see leasing traction pick up steam in markets with lower barriers to entry like Dallas, Houston and Boston,” says Gibson.

Both reports point out that the benefits to international retailers and investors far outweighing the risks of increased competition.

“Borders are becoming irrelevant and in the coming decade, owners and occupiers of real estate will have a laser-focused approach on investment and expansion, creating portfolios with varied markets, risk and maturity,” concludes Caldwell.