The Association of Foreign Investors in Real Estate’s annual survey shows the majority of respondents plan to increase their investment in U.S. commercial real estate this year, even though the percentage is lower than last year’s notable high.
At 60%, the percentage is down from 72% in 2011.
Key developments that could increase interest in U.S. CRE this year would be an improvement in property fundamentals or for proposals that would lessen the impact of the Foreign Investment in Real Property Tax Act to go through, according to AFIRE CEO James A. Fetgatter.
While AFIRE investors generally do provide their own equity, “most of them do leverage when they come into the U.S.,” Fetgatter told this publication, when asked about the extent to which investments tend to be financed. They tend to obtain the financing either from U.S. banks or U.S. offices of foreign banks, he said.