European investors are returning to the US markets after a period of inactivity during the pandemic, says Jeremy Katz, co-head of CP Capital. In 2020, European investment stalled due to travel restrictions during the pandemic, but those investors have now returned with a renewed enthusiasm.

"There is a pent-up demand that is materializing. In 2020, Europeans literally could not come here, so foreign investment dropped pretty precipitously because of the practical challenges," Katz tells GlobeSt.com. "That demand didn't go away, but those investors weren't able to execute. Now, investors are playing catch-up and trying to meet their allocation targets."

The pandemic and the Russia-Ukraine conflict are contributing to European demand for US real estate with a specific emphasis on multifamily and industrial. "COVID has shifted the focus from office, retail and hospitality to multifamily and industrial, which have proven resilient," Katz says. "Everyone saw what happened to those sectors during the last two recessions, and so there has been a reallocation of capital to those directions."