Global dollars landing in Boston

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Petz_Frank_Color_Casual_HiResFrom Frank Petz
Managing Director, Boston Capital Markets Lead
 

JLL Boston hosted a lunch for Investor clients last week featuring a presentation given by Lucy Fletcher, Director of JLL International Capital Group for Asia and Canada and Stephan von Barczy, Head of French JLL Capital Markets Group for Europe and Middle East, with a global investor perspective also given by Colin Dyer, our JLL CEO. We all know international capital is more relevant, but the JLL presentation detailed the underpinnings and established the durability of global investor appetite.

JLL's Lucy Fletcher and Stephan von Barczy giving their global capital perspectives to our local investor clients.

JLL’s Lucy Fletcher and Stephan von Barczy giving their global capital perspectives to our local investor clients.

 

As we have seen, Boston has become a target for foreign capital this year and it was still interesting to see that the metro area catapulted into 2nd position with regards to foreign inflows, up from 8th just a year earlier. Both Oxford Properties (Canadian) and Norges Bank (Norway) purchases, in large part, lead to the high ranking, but behind them are many other foreign entities that are, of late, considering Boston a real and important investment target. In all, foreign capital was behind the purchase of 19 properties and the $3.3 billion in Boston, through August 31st, 2014.

Global flows have reached 2006 levels, and if allocations towards direct real estate continue to rise, the dollars that will be looking for real estate can easily grow by trillions.

Foreign capital

How long will this last?  We don’t know for sure, but we do know that it feels as though Boston has reached the global stage. Many new landlords – both local and foreign – are bringing with their ownership exciting plans to revitalize a building or a corridor, or a neighborhood. This increase in investor appetite and trades has created not only an evolving ownership landscape but an evolution of our streetscapes.

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