Foreign Money - Fall 2016

Like their domestic counterparts, foreign investors are flocking to U.S commercial real estate for yields not being realized in more traditional investments. Although South Florida has been a primary repository for foreign capital – mainly from Central and South America – that trend is now spreading to other parts of the Sunshine State. Harshman & Co. predicts that in the coming 18 to 24 months, if current economic conditions hold, investor jitters over the so-called “Brexit” vote in the United Kingdom, along with negative interest rates in Germany and Japan and potentially other European countries, will drive additional offshore money into Southwest Florida properties. Consider, too, that in comparison to cap rates in Miami and Fort Lauderdale, in particular, Sarasota and Bradenton commercial properties offer higher-than-average returns at “bargain” prices.