{"id":959,"date":"2021-05-06T09:17:27","date_gmt":"2021-05-06T09:17:27","guid":{"rendered":"https:\/\/www.yardimatrix.com\/blog\/?p=959"},"modified":"2023-09-12T16:06:46","modified_gmt":"2023-09-12T16:06:46","slug":"low-yields-push-investors-outside-core-focus","status":"publish","type":"post","link":"https:\/\/www.yardimatrix.com\/blog\/low-yields-push-investors-outside-core-focus\/","title":{"rendered":"Low Yields Push Investors Outside Core Focus"},"content":{"rendered":"\n

Foreign investors in the U.S. have traditionally focused acquisitions on trophy properties in the top handful of core markets, but that trend is changing as persistently low yields make it hard to meet return targets.<\/p>\n\n\n\n

As a result, non-U.S. investors are increasingly looking at rapidly growing secondary and even tertiary markets, according to a newly released survey<\/a><\/strong> of more than 100 leading investors and institutions by industry trade group AFIRE (Association of Foreign Investors in Real Estate).<\/p>\n\n\n\n

The survey found that nearly three in four non-U.S. respondents intend to boost their U.S. real estate investments in the next three to five years. Austin ranked as the top U.S. city for planned investments in 2021, marking the first time that any tertiary market placed in the top three in AFIRE\u2019s survey. The Texas capital was trailed by Dallas, a secondary city, which came in third place after Boston\u2014signaling a potential shift in investor focus away from gateway cities and towards smaller and less-dense metros.<\/p>\n\n\n\n

\"AFIRE
Chart courtesy of AFIRE<\/figcaption><\/figure>\n\n\n\n

Secondary markets are becoming more attractive as investors chase yields in a low interest rate environment, noted Will McIntosh, global head of research for USAA Real Estate, during a virtual panel discussion on the report\u2019s findings.<\/p>\n\n\n\n

\u201cWhen I would talk to international investors, if I happened to mention Austin or Nashville or Charlotte, a lot of times they would look at me and go: can you land a Triple Seven there?\u201d he said.<\/p>\n\n\n\n

Strong universities, a young and educated population, relatively low costs and a low-tax regime are among the factors that are propelling investor interest in fast-growth markets such as Austin, AFIRE CEO Gunnar Branson told Commercial Property Executive<\/a><\/em>.<\/p>\n\n\n\n

\u201cIt\u2019s migration that\u2019s been going on for a while, a lot of it to the Sunbelt, and a lot of it to those markets that are more affordable and where there\u2019s new growth,\u201d he said. Atlanta; Phoenix; Charlotte, N.C.; and Nashville, Tenn., have also risen in AFIRE\u2019s ranking since last year, while Tampa, Fla.\u2014which previously didn\u2019t appear on the list\u2014ranked number 12.<\/p>\n\n\n\n

For a full analysis of the report, see: Global Investors Are Still Betting on the US, AFIRE Finds<\/a><\/p>\n\n\n\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

Foreign investors in the U.S. have traditionally focused acquisitions on trophy properties in the top handful of core markets, but that trend is changing as persistently low yields make it hard to meet return targets. As a result, non-U.S. investors are increasingly looking at rapidly growing secondary and even tertiary markets, according to a newly […]<\/p>\n","protected":false},"author":463,"featured_media":963,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[248,23],"tags":[336,221],"class_list":["post-959","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commentary","category-studies-and-guides","tag-industrial-real-estate-outlook","tag-multifamily-outlook-2021"],"yoast_head":"\nLow Yields Push Investors Outside Core Focus - Yardi Matrix Blog<\/title>\n<meta name=\"description\" content=\"Non-U.S. investors are increasingly looking at rapidly growing secondary and even tertiary markets, according to a newly released survey.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.yardimatrix.com\/blog\/low-yields-push-investors-outside-core-focus\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Low Yields Push Investors Outside Core Focus\" \/>\n<meta property=\"og:description\" content=\"Non-U.S. investors are increasingly looking at rapidly growing secondary and even tertiary markets, according to a newly released survey.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.yardimatrix.com\/blog\/low-yields-push-investors-outside-core-focus\/\" \/>\n<meta property=\"og:site_name\" content=\"Yardi Matrix Blog\" \/>\n<meta property=\"article:published_time\" content=\"2021-05-06T09:17:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-12T16:06:46+00:00\" \/>\n<meta name=\"author\" content=\"Paul Fiorilla\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.yardimatrix.com\/blog\/wp-content\/uploads\/sites\/39\/2021\/05\/mitchell-kmetz-ztVcGTSD8xw-unsplash.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Paul Fiorilla\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Low Yields Push Investors Outside Core Focus - 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