It’s Getting Crowded: Influx of Foreign Investment Causing US Investors to Look Inland

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Inland cities versus coastal hubs

Kevin Gillihan
Vice President

Recent trends have revealed that inland cities are competing with traditional coastal hubs for real estate investor dollars.
Currently, two out of every five dollars being invested in primary US skylines comes from foreign capital. This is causing cities such as New York City, Washington D.C., Houston and San Francisco to become more competitive, and forcing US investors to seek opportunities inland. This is good news for inland markets such as Denver, Atlanta and Phoenix, as well as tertiary markets like Indianapolis.

Indianapolis doesn’t compete at the level of investment with the primary markets, or even major inland markets, but we have seen quite the increases in capital markets activity, with 40% of the CBD skyline trading hands in the past three years. This comes after a five year drought when there was no activity on these properties.

Investors are seeing value add opportunities, as well as the increase in the workforce living downtown, the low cost of living that Indy enjoys and a stable diversified economy. As Indy’s downtown continues to strengthen and its occupancy improves, we expect for this trend to continue and for investors from across the US to evaluate opportunities in our great city. Read more.

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