In late June, global markets went for a roller coaster ride as Great Britain voted to leave the European Union. More than a month after “Brexit,” political and economic uncertainty remains high across the globe and this uncertainty is expected to last for the foreseeable future.
For investors looking to enhance their portfolios amid this uncertainty, U.S. commercial real estate may offer an opportunity for growth. Jilliane Helman, writing for Commcerical Property Executive, says, “the United States has become a safe harbor for global investment capital. … Total global investment in U.S. CRE grew to $94.1 billion in 2015, (which) accounts for a 576 percent increase from the $14.1 billion invested in 2010, when adjusted for inflation. Annualized investment capital year-to-date, as of June 2016, is projected to be $67.7 billion.”
U.S. News & World Report real estate reporter Devon Thorsby writes that foreign investors will find the U.S.’s low interest rates alluring, as well as the opportunity to move their money outside Europe and the United Kingdom.
New York, especially, may be appealing. “Analysts at data firm Axiometrics contend that ‘(investors) from the Middle East, who have long favored London, could be ready for a bigger bite of the Big Apple if they see profitability falling in Great Britain,’” writes Diana Bell of National Real Estate Investor.
Will we see a bump in the Madison CRE market thanks to Brexit? Only time will really tell. Post your predictions below.
