New York extended its lead over London as the top destination for commercial real-estate investment as the U.S. economy revived and Europe’s debt crisis discouraged some buying in the region, property broker Cushman & Wakefield Inc. said today in a report.
Investment for commercial properties rose to $35.7 billion in New York last year, including multifamily buildings, making it the largest target for buyers at a city level, the broker said. That compares with $29.2 billion in London and $22.6 billion for Tokyo.
Commercial investment globally rose 14 percent in 2011 to $727 billion, or $808 billion including multifamily properties, Cushman & Wakefield said, with volumes up 83 percent from 2009. New York overtook London as the No. 1 destination for real-estate investment in the twelve months through August for the first time since 2007 as improved access to financing spurred deals. At the time, New York led London by $2.5 billion.
“There was a flight to quality in the Americas,” said Greg Vorwaller, global head of capital markets for Cushman & Wakefield. Investors focused “on best-in-class assets in flagship markets” including New York, Washington, San Francisco, Boston, Los Angeles and Chicago, he said.