Marks Paneth Real Estate Survey Indicates that Demand by Foreign Investors May Increase in 2017

March 28, 2017

New York, NY (March 28, 2017) – Sixty five percent of real estate professionals surveyed for Marks Paneth’s most recent Gotham Commercial Real Estate Monitor expect demand by foreign investors to increase in 2017.

Of the more than $19 billion spent on commercial real estate in the United States in the 12 months prior to Q1 2016, a disproportionate amount was spent in New York City.

“About a quarter of all the capital invested in New York City commercial real estate comes from foreign buyers, often in the form of institutional investors, such as pension funds,” says William Jennings, Partner-in-Charge of Marks Paneth’s Real Estate Group. “In New York City, Asia and the Middle East dominate the commercial real estate market.”

For the seventh consecutive year, the Association for Foreign Investors in Real Estate (AFIRE) has ranked New York City the leading destination in the US for foreign investment. Sixty four percent of foreign investors surveyed by the organization say that they plan to increase investment in US real estate. Thirty one percent said that they will maintain their level of investment. Multifamily residential properties are the most favored asset class, according to foreign investors surveyed.

Methodology

The results reported here are based on completed self-administered questionnaires using two data collection methods —online and in-person intercept interviews. Surveys were fielded in December, 2016.

Marks Paneth staff supervised the intercept interviews and email deployments for online surveys. Galloway Research hosted the online data collection site and tabulated paper questionnaires. Business Research Solutions managed the research project, analyzed the data and reported findings.

The survey was completed by 116 New York City-based commercial real estate professionals, including legal counsel, bankers and lenders, financial leaders, hedge-fund managers, brokers and agents, developers, property managers and property owners.

For more information, please contact John McKenna of ICR, Inc. at 203.682.8252 or john.mckenna@icrinc.com. The full survey results can be found here.

 

About Marks Paneth LLP

Marks Paneth LLP, a premier accounting firm dating back to 1907, is ranked the 30th largest accounting firm in the nation, as reported by Accounting Today. With a team of nearly 700 people, including more than 90 partners, throughout the Mid-Atlantic Region, Marks Paneth provides public and private businesses with a full range of audit, accounting, tax, consulting, trade remediation and valuation services, as well as litigation and financial advisory services, to domestic and international clients. The firm serves clients in a wide range of industries including real estate; hospitality; manufacturing, wholesale and distribution; retail; media and entertainment; nonprofit, government and healthcare; financial and professional services industries; and high-net-worth individuals and their families.

Marks Paneth’s membership in Morison KSi Ltd., a leading international association for independent business advisers, financial consulting and accounting firms, facilitates service delivery to clients throughout the United States and around the world.

Marks Paneth is headquartered in New York City, with additional offices in New York State, New Jersey, Pennsylvania and Washington, DC. For more information, please visit markspaneth.com.

About Marks Paneth’s Real Estate Group

Marks Paneth has served the real estate industry for more than 100 years. We have built a solid track record assisting many of the industry’s premier commercial and residential real estate owners, developers, builders, REITs (real estate investment trusts) and property managers. We are trusted advisers to leading New York City real estate management companies, as well as prominent real estate families.

We offer a full range of financial, tax and accounting solutions – including guidance on acquisitions and joint ventures, tax planning, financial statement and tax return preparation, tax consulting, partnership cash flow modeling and transactional services. These services are customized to satisfy the requirements of virtually every real estate stakeholder, from the individual real estate owner to the largest global institutional investor.