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E-Commerce Drives Foreign Real Estate Investment

It is often valuable to see where others are investing, especially institutional and large investment groups. One area that has seen a large growth and offers some potential for investment, especially in areas like the Lehigh Valley, that are a day’s trucking distance from a large portion of the east coast population.

There are also many opportunities to invest in e-commerce growth in Philadelphia and the surrounding suburbs. South Jersey could be an interesting area for e-commerce investment as there is plenty of open space and available warehouses.

The National Real Estate Investor has an article with some excellent insights on foreign real estate investment. It looks like foreign investors are looking at the continued growth of e-commerce as much of their investment is starting to go into Industrial properties.

Foreign Investors Continue to Prefer Industrial Properties in 2018

For a long time, as the millennial generation matured and U.S. home ownership rates languished, apartment rentals were considered as error-proof an investment bet as they come. Over the past year or two, however, there have been inklings that the apartment market in certain cities may have been overbuilt and that rent increases possible for this real estate cycle have topped out.

Industrial properties, on the other hand, suddenly seem like a no-brainer, with trends from e-commerce growth to omni-channel retailing to legalization of marijuana promising rising demand and growing rents, supported by a shortage of new construction for much of the current cycle. Investment sales data bears out the theory that industrial will be king over the coming year. In the third quarter of 2017, the most recent period for which data is available, overall investment sales in the U.S. declined by 2 percent year-over-year, according to research firm Real Capital Analytics (RCA). Office, retail and hotel sectors experienced double-digit declines in volume. In the industrial sector, sales went up by 59 percent.