Commercial real estate investment has seen a great increase in
activity within the last few years. Our city of Boston is actually
one of the localities that is benefiting the most from this
commercial real estate boom. Safe core cities worldwide are being
targeted by major firms for investment opportunities. Moreover, the
recent economic downturn has forced the hand of these corporations
towards less risky cities that in the past have had sustained
economic success. This flight to quality that firms are going
through creates a separation between the less risk-averse cities in
the Western World and the ones elsewhere which are striving to keep
up.
According to the study enacted by Cushman & Wakefield, cities
like Boston are regaining the attention of investors and have shown
that prices are rising for commercial purchase. This is because
there is becoming a shortage of desirable areas to build on whilst
these companies nonetheless are still wishing to be close to these
proven metropolitan hubs. The dominant cities of the future have
resources and land that will soon be needed, thus they attempting
to continuously modernize themselves with the hopes that they too
will garner the trust of the high-ranking officials in the
commercial world. This flight to quality for firms creates a
polarization between the less risk-averse cities that today are
reaping the benefits of societys current economic trepidations and
the cities abroad which are striving to keep up.
When confidence about the worlds economic outlook improves, the
worlds developing countries as a whole will reap the sudden vast
inflow of dollars that the majority of the United States is now
experiencing. Many cities in Asia are realizing a steady increase
in investment, with 8 of the worlds top 20 markets being from the
continent this year, compared to just 3 five years ago. It is
interesting to note that just 7 places in North America are apart
of the top markets for this year. Moreover, North America
represents the leader in all sectors of commercial investment apart
from the purchase of vacant sites where future developments for
commercial activity are planned. The aforementioned sector is led
by Asia, and much of this can explain its market share
increase.
The overall report from Cushman & Wakefield shows that the
fastest growing city due to commercial real estate activity is
Chicago, with New York in second and Boston in third on a given
list of 26 notable investment cities worldwide. What this all boils
down to is that in todays uneasy economic climate we find ourselves
reverting back to markets in which we find the most comfort and
protection. With all of the overseas capital flowing into our given
cities, there is no better time to invest in real estate than now.
This is certainly an exciting time for Boston and the few other
cities who are growing along side us at such a fast rate.
For further information on this study and the other sectors
discussed in further detail refer to Boston SF.