Seattle has dethroned Manhattan as the top US commercial real-estate hotspot for foreign investors
- Seattle has overtaken Manhattan as a commercial real estate hotspot for overseas investors, according to a report.
- Foreign investment in Manhattan’s commercial real estate has declined nearly 80% over the past year, according to RCA.
- This is the first time since the 2009 financial crisis that Manhattan is no longer at the top of the list.
Manhattan is no longer the biggest hotspot for foreign investors buying commercial real estate in the US, according to a new report from Real Capital Analytics (RCA).
This is the first time since the global financial crisis in 2009 that Manhattan is no longer at the top of the list.
The neighborhood was dethroned from Seattle after New York investments plummeted last year, according to RCA data first reported by Bloomberg. According to RCA, cross-border commercial real estate acquisitions in Manhattan declined nearly 80% to just over $ 2 billion through March 2021.
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Over the same period, Seattle foreign real estate investment declined only 11% to just over $ 2.5 billion, pushing it to the top, the report said.
Real estate in the region is dominated by the technology industry, which, according to CBRE, now accounts for around 42% of the region’s office space.
Tech giants Microsoft and Amazon live in the northwestern city, while Google and Facebook develop websites there. More than half of Seattle’s cross-border investments came from Canada, RCA said. In Manhattan, Asia made up the largest part, followed by Europe.
According to RCA, the dramatic decline in Manhattan real estate investments was partly due to uncertainty over the office market as more companies continue to let their employees work remotely.
Rents in the area were also hit, as Manhattan’s median rent fell to an all-time low of $ 2,700 per month in the first quarter of 2021. The neighborhoods of Nolita, Lower East Side, and Little Italy saw the largest price drops. Insider Libertina Brandt reported.
However, in terms of overseas real estate investment, Manhattan was still roughly $ 400 million ahead of San Francisco. San Francisco took third place on the RCA rankings. The rest of the top ten consisted of Chicago, Dallas, Atlanta, Los Angeles, Phoenix, Boston, and San Jose.