Austin is on target for foreign real estate investors targeting the United States
In a recent investigation published by AFIRE, an industry group for real estate investors, foreign real estate investors favored Austin over any other US city for the purchase of a property in 2021. Boston came in second, with Dallas in third place . Houston is tied for 14th and San Antonio tied for 15th.
This is the first time in the 30-year history of the AFIRE survey that a city as small in population as Austin has topped the list or even made it into the top three. Twenty-three percent of those polled place Austin first, and 33% rank Austin first, second or third.
Austin was ranked 10th on last year’s AFIRE list of most favored US markets for commercial real estate investment, while Dallas was in 7th, Houston tied for 12th and San Antonio was unranked.
In this year’s survey, foreign real estate investors chose apartment buildings as their preferred property type, with warehouses ranking second.
Mike McDonald, Vice President of Cushman & Wakefield Commercial Real Estate Services Company, recently Told The New York Times that Austin is currently “the hottest market in the country.”
“Business transactions are expected to resume in the second half of 2021 and into 2022, as more people get vaccinated, more businesses operate at higher capacity, leisure and business travel improves and that consumer spending increases, ”noted the National Association of Real Estate Agents in a first trimester report in the Austin commercial real estate market.
A number of recent developments attest to Austin’s status as a rising star in commercial real estate:
- A march listing of the National Association of Realtors placed Austin among the top 10 US commercial real estate markets this year.
- A recent survey by commercial real estate services giant CBRE identified Austin as the top U.S. metropolitan area for investment outlook in 2021.
- In March, commercial real estate investment platform CrowdStreet announced that it was moving its headquarters from Portland, Oregon to Austin. The majority of the properties sold by CrowdStreet are in Texas.
- In January, the owner and operator of the Digital Realty Trust data center said it was move your seat from San Francisco to Austin. The company has more than 30 data centers in Texas.