Tuesday, 26 January 2016 | Commercial Real Estate Direct Staff Report | Commercial Real Estate Direct
A total of $533 billion of commercial real estate changed hands last year, up 23 percent from a year earlier, according to Real Capital Analytics. The volume also was roughly 4 percent more than had been projected as late as last November.
However, it remains shy of the record $574.9 billion of deal volume that took place during the market’s peak year of 2007.
Foreign investors accounted for $91.1 billion, or 17.1 percent of the transaction volume last year. That was up from the 10 percent average in each of the previous four years, according to the New York research company. The foreign investors were led by the Canadians, which completed $24.6 billion of deals. Those investors included the Canada Pension Plan Investment Board and Caisse de depot et placement du Quebec, whose Ivanhoe Cambridge affiliate late last year purchased Manhattan’s Stuyvesant Town/Peter Cooper Village apartment property for $5.3 billion.
I have been in the financial services industry for 20 years and our firm provides an education platform that gets clients to “think differently” about their financial picture. For many years we have communicated to clients the need to diversify their portfolios using alternative asset classes and more specifically, private non-traded investments. Due diligence on these types of financial vehicles is essential and when I learned about Blue Vault in 2010, our firm immediately began using their material as a tool to build confidence in the minds of our advisors on which alternatives to recommend to clients. I am impressed with the way Blue Vault continues to add value to their subscribers and I view their publication as a tremendous resource in today’s complex world.