Report: LA Has Edge Over NY Among Real Estate Investors
Move over Big Apple, LA is tops, according to a new CBRE survey.
The CBRE Americas Investor Intentions Survey 2016 shows most real estate investors in the Americas plan to increase their acquisitions this year, targeting LA over other cities, including New York and Dallas/Fort Worth. Los Angeles ranked as the top metro for property investment this year, edging out New York City.
Multifamily properties are expected to be the most attractive property type for real estate investors this year at 30%. Office and industrial properties nearly tied for second, coming in at 24% and 23%, respectively.
On the whole, investors seem optimistic when it comes to buying commercial properties despite the stock market or other economic factors, with 65% of investors planning on being net buyers. That number is up from 60% last year.
Around 81% of investors plan to maintain or up their commercial real estate purchases this year.
CBRE director of research and analysis for Southern California Petra Durnin tells Bisnow LA provides a wealth of opportunities for investors from domestic players looking for value-add opportunities to foreign investors looking for a safe haven.
A weak domestic economy is considered the No. 1 threat to the property markets this year, similar to last year, coming in at 27%.
A weak global economy, with a particular focus on China, is seen as the second-largest threat, coming in at 25%, according to the survey.
