Israeli Investors Splurge on US CRE

Globes (ISR) reports: A report recently released by Bregman Baraz Real Estate, Real Capital Analytics’ (RCA) data partner in Israel, revealed that Israeli investors purchased the second largest amount of US commercial real estate during the 12 month period though June 2011. The report, based on data aggregated by RCA, stated that Israel-based firms acquired $1.2 billion during the that period, which accounted for one-tenth of the 7.5% of all US transaction volume represented by cross-border investment. Relatively speaking, the article summarized that, “Israel is a small country with a large shadow – proportionally a very large shadow – in the US income-producing real estate market.”

Among the headline-purchases made by Israeli investors within the US over the past year, the majority occurred in Manhattan, Boston, Chicago, and, less intuitively, landlocked cities such as Houston, TX. As a recent article on Israeli-business news source Globes stated, “There is no question that Israelis have again fallen in love with Manhattan. Almost 40% of deals (in dollar terms) in the past year were in Manhattan, and 46% were in the metropolitan New York area.”

The article also reminded readers that last year’s significant investment from Israeli investors comes as activity universally rose in the US commercial real estate market. Transaction volume more than doubled between the first half of 2011 and the same period last year, with rising US investment driving a 25% increase in global commercial sales over the same time frame. Additionally, foreign investment into the US was up by 33% in the first half of 2011, as investors from Israel were joined by firms from Canada, Singapore, and Switzerland, among others in seizing US opportunities.

View the full article on Globes (ISR): Israeli Investors Splurge on US CRE


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