As we’ve seen, the United Kingdom’s decision to leave the European Union affects the United States too. If you’re in the real estate industry, an investor, or a home buyer, you are probably curious about the Brexit’s effects on commercial real estate. According to Florida Realtors, many international investors are now interested in the United States for stability. Certified Commercial Investment Member Institute, one of the largest networks of commercial real estate professionals, is seeing an increase in global activity to tertiary markets.
“The trend of Foreign Direct Investment (FDI) net inflows of capital toward the U.S. commercial real estate market will remain strong and the Brexit initial ripple effect for demand in the U.S. will initially increase as investors seek security,” says Kamil Homsi, CCIM, president of Global Realty Capital LLC in New York City. “Additionally, I see the demand increasing constantly to acquire senior and student housing, self-storage portfolios, and medical facilities across all regions.”
Its also helpful that interest rates are very low in the United States. Last week, the 30-year Treasury yield fellto a record low of 2.098 percent and then reached back up to 2.12 percent. It is unlikely the Federal Reserve will raise rates as the British pound weakens and the dollar strengthens.
“Shortly after Brexit, I received several calls from international investors seeking more information about Texas commercial real estate,” says Jim Young, CCIM, broker at Longbow Real Estate Group in Austin, Texas. “In addition, several U.K. investors tell me that they see U.S. commercial real estate as a safe haven. Given low interest rates on commercial real estate loans and commercial rental rates in Central Texas that continue to rise, there will be even more of an uptick in European and global investor activity.”
The United States has always been a stable investment for foreigners, but Brexit’s effects on commercial real estate here show that its even more popular now. Check out the commercial properties available in Miami, and contact a RE/MAX Paradise agent today with any questions about properties!