Cross-border capital flows into Tampa reached $540 million in 2015, the highest level in nine years
Tampa, FL – July 18, 2016 – Over the past two years, cross-border capital flows into the U.S. have risen dramatically and in 2015 foreign investment in Tampa commercial real estate hit its highest rate in at least nine years, according to a new report by CBRE Group, Inc. Last year, Florida ranked fourth in the nation in terms of cross-border investment volume and the state improved to rank third in Q1 2016. Foreign buying is projected to cool slightly in 2016 relative to 2015, but remains elevated relative to historical rates.
The report, “Florida: A Destination for Global Capital,” describes the factors that are attracting foreign investors to Florida – factors including the state’s rapidly growing population and economy, the powerful global brand of its major cities, and strong cultural and economic ties to Latin America and beyond. In 2015, cross-border capital flows into Florida reached $4.3 billion, a high-point for the cycle thus far and up 85% over 2014. Cross-border capital flows into Tampa reached new heights in 2015 when foreign investment was nearly $540 million, the highest level recorded since 2007.
“Florida has been an attractive destination for foreign buyers thanks to its high rates of job creation and economic growth,” said Quinn Eddins, Director of Research and Analysis, CBRE Florida. “And perhaps equally important is the fact that Florida cities have strong global brands and are familiar to investors all over the world. With their strong economic performance and international renown, it is not surprising that Florida’s cities have been so successful at attracting foreign investment to their commercial real estate markets.”
According to the report, foreign investment in Florida is expected to moderate compared to 2015, but will remain elevated relative to historical transaction volumes. Heightened uncertainty in the global economy will enhance the allure of U.S. markets as safe havens for global capital. Primary gateway markets will receive the most interest from foreign buyers, but Florida, and Miami in particular, should benefit as well.
The report lists the following trends in cross-border investment in Tampa real estate
Canadians have contributed 42% of the foreign capital entering Tampa CRE market since 2007, with a total investment over $957 million. Canadian investors have expressed strong preference for multifamily properties.
Foreign investment in multifamily properties has totaled nearly $730 million since 2007, accounting for 32% of the total cross-border sales volume across property types.
Cross-border investment in retail properties has represented 30% of foreign investment across all property types since 2007.
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 (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.