Commercial real estate transactions buoyed by private buyers and foreign investors
Los Angeles – Nov. 18, 2016 – Los Angeles is expected to be one of several major U.S. markets to boast increasing real estate transaction volumes in 2017, buoyed in part by rising demand from private buyers and cross-border capital, according to the latest research by CBRE Group, Inc.
A total of $21 billion worth of commercial real estate have traded hands in Los Angeles year to date – just second to Denver and ahead of Boston – the only three U.S. metro areas with increasing real estate transaction volumes for this period of time.
Demand was primarily driven by private buyers with acquisitions totaling $9.9 billion, boosting their market share for the third year in a row. Foreign investors acquired $3.7 billion worth of commercial properties during the same time frame. This also marks the third consecutive year of growth, underscoring the growing role of international capital in local commercial real estate investments.
“As risk aversion mounts and yields compress in the coming year, liquidity will be squeezed to stronger performing gateway economies and assets that assuage investors of recession fears,” said George Entis, CBRE Capital Markets research analyst. “Los Angeles is particularly attractive due to its local economy with growth across most industries, rising wages, and one of the lowest unemployment rates since before 1990.”
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.