Late in 2017 much to the surprise of many, Los Angeles displace New York City as the top city for foreign investment. A first for the left coast city and a sizable boost to its economy with a whopping $23 billion-plus overall, and $8.28 billion going to the cities commercial sector making it a sound and savvy commercial real estate investment.
Rising from a fifth-place ranking to second place with foreign investors is no mean trick for any city particularly when you are competing with international players like Paris, Tokyo and of course New York City.
One of the most significant factors in this rise is the diverse demographics that make up the City of Los Angeles. The metro region alone is host to more than 13 million souls with an average income of $65,950, which is slightly above the national average. The fact that Los Angeles was the third most popular destination for work-related relocations according to a recent Crain’s article, only adds to its foreign business investment appeal.
Another critical factor is LA’s commercial rentals, which unlike many of its counterparts still has room to grow. Additionally LA real estate is reasonably priced (yes you heard that correctly) when compared to the commercial property costs in competing metropolises such as London and Tokyo.
As reported in The Real Deal, an LA-based real estate newsletter, the top foreign investor in LA last year was Singapore, with more than $2.26 billion invested. Running a close second is Qatar with $2.0 billion worth of real estate properties in the greater LA basin. Coming in third is Canada, with $1.6 billion invested in the LA market.
Below are the top 12 international investors by country in descending order.
- Singapore: $2.26 billion
- Qatar: $2.08 billion
- Canada: $1.6 billion
- France: $519 million
- South Korea: $472.1 million
- Germany: $380.1 million
- China: $311.1 million
- Japan: $273.1 million
- Switzerland: $191.5 million
- Hong Kong: $83.4 million
- Thailand: $75 million
- United Kingdom: $50 million
All of this international investment creates a powerful lure for additional investors and creating a buffer against future economic boom and bust cycles, giving Angeleno’s a decided advantage for financial stability and future growth.