By the end of 2011, it was a major North American city, not one in Europe or Asia, that was noted as the top commercial real estate market in the world, according to a report, thanks in large part to a considerably strong apartment sector.
The report, by real estate services firm Cushman & Wakefield, indicates New York City beat out London and Tokyo as the premier CRE market in the world last year. Slightly more than $28 billion was invested in the Big Apple during the year.
Including NYC, Greg Vorwaller, global head of capital markets for C&W, stated the biggest markets in the U.S. saw the most activity in 2011.
“Consistent with what we saw globally, there was a flight to quality in the Americas with investors focusing on best-in-class assets in flagship markets (New York, Washington, D.C., San Francisco, Boston, Los Angeles and Chicago),” he said.
In total, $53.6 billion was put into multifamily property investment in the Americas, making up a substantial portion of the $235.7 billion in CRE investment during the year.
The news of a continually growing multifamily market in many areas around the country could yield significant returns for rental management companies.