Skip to main content
search
News

Foreign Real Estate Investment Grows in Phoenix

By February 24, 2020November 14th, 2022No Comments

By Corina Vanek | Phoenix Business Journal

Investment from foreign firms fueled more than $1 billion worth of real estate transactions in Phoenix during 2019, including the city’s two largest office sales.

According to CBRE data, the late-2019 purchases of the Biltmore Center for $212 million by Switzerland-based Partners Group and the $190 million purchase of the Collier Center by Japan-based Sumitomo Corp. highlighted another consecutive year of growing foreign investment to the Valley.

“Foreign investment in Phoenix is probably as great as it’s ever been,” said Chris Marchildon, first vice president of CBRE in Phoenix. “Investment groups are looking for high yields, and in Phoenix there is a strong economy and lower prices than the coastal cities, so investors can still get the high yields.”

On average, foreign investors have bought $1.8 billion worth of real estate annually in Phoenix since 2015.

In 2019, there were 33 transactions by foreign investors in the Valley, 17 of which were multifamily, six offices, four industrial buildings and six of other real estate types, including retail, hotels and medical buildings, according to CBRE data.

Will Mast, first vice president of CBRE in Phoenix, said foreign investors typically are longer-term holders of real estate assets, often looking to keep a building for seven to 10 years.

Investors from Canada accounted for 11.44% of foreign real estate investment into Phoenix from 2005 to 2019, the largest of any group. Japanese investors were second, accounting for 2.81% of overall foreign investment in the 15-year period.

Read More (subscriber content)