Foreign investment in NYC commercial properties doubles, Knakal says: VIDEO

TRD New York /
Jun.June 06, 2012 03:30 PM

While foreign investment in New York City residential real estate has captured the headlines, Massey Knakal Realty Services Chairman Robert Knakal appeared on CNBC’s “Street Signs” this afternoon to say foreign investors have also sought commercial properties (see video above). He reported seeing twice as much foreign investment in real estate thus far in 2012 as he did during the same period last year.

Knakal said most of the money was coming from nations that also rank among the United States’ top trading partners, led by Canada and Mexico. The investment comes in the form of both purchases and equity financing to established real estate players.

Like the residential buyers, commercial investors are making their investments completely in cash despite the record low mortgage rates. Knakal attributed the trend to global financial uncertainty and said foreigners most covet the highest-quality properties.

“They are loking at buildings in New York City as safety deposit boxes,” he said. The buildings provide an average annual return of about 4 percent to 6 percent, according to Knakal.


Related Articles

arrow_forward_ios
731 Lexington Avenue and 410 East 61st Street (inset) with Vornado's Steve Roth (Googel Maps; VNO)

Home Depot eyes former Bed Bath & Beyond space on First Ave

Home Depot eyes former Bed Bath & Beyond space on First Ave
Ian Schrager and the Pulic Hotel at 215 Chrystie Street (Getty; Google)

$60M mezz loan on Ian Schrager’s Public Hotel is for sale

$60M mezz loan on Ian Schrager’s Public Hotel is for sale
J.C. Penney at the Westfield South Shore mall in Long Island and  J.C. Penney CEO Jill Soltau (Google Maps; Getty)

J.C. Penney to keep Bay Shore outpost open for now

J.C. Penney to keep Bay Shore outpost open for now
Signature Bank CEO Joseph DePaolo and New York Community Bank CEO Joseph Ficalora (Photos via Getty; Facebook; iStock)

NYC’s multifamily lenders see shares tumble in 2020

NYC’s multifamily lenders see shares tumble in 2020
The analysis predicts that office vacancies across the world will continue upward (iStock)

Report: Office market won’t return to glory until 2025

Report: Office market won’t return to glory until 2025
Korean wave pours into U.S. commercial real estate

Korean wave pours into U.S. commercial real estate

Korean wave pours into U.S. commercial real estate
The Martinique hotel (Wikipedia, Google Maps)

Operator of Martinique Hotel in Manhattan files for bankruptcy

Operator of Martinique Hotel in Manhattan files for bankruptcy
CEO Mark Tritton and 410 East 61st Street (Getty, Google Maps)

Bed Bath & Beyond will permanently close UES store

Bed Bath & Beyond will permanently close UES store
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...