How Foreign Investors See US Commercial Real Estate | Gunnar Branson, AFIRE
Where are foreign investors putting capital in US commercial real estate? Michael Bull, CCIM asks Gunnar Branson, CEO of AFIRE, what the mid-year Pulse shows. Gunnar Branson leads AFIRE, the Association of Foreign Investors in Real Estate, whose members are institutional investors from 24 countries. Twice a year AFIRE surveys them on their US allocations, risks, and opportunities. This year's headline is a turn toward infrastructure and energy. Data centers are pulling institutional capital, and for the first time a majority of respondents say energy availability and cost shape where they invest. On property types, industrial still tops the wish list and multifamily follows, but office has climbed to number 3. Gunnar explains why New York has almost no Class A office space available, why retail's comeback is the model for office, and why mixed-use, 24/7 neighborhoods are winning tenants. Michael shares why he calls office the buy of the decade, with a 200,000 square foot tower coming to market at about $64 a foot. The conversation also covers the US economy (90% of respondents see politics as a negative force on investment, while 94% say this is a time for long-term investing), Japanese capital and the weak yen, why nearly half of the world's institutional quality real estate sits in the US, the housing affordability gap, build-to-rent and manufactured housing, household financial stress, tariffs and immigrant labor, and why location still matters. In this episode:00:00 Introduction: how foreign investors view the US01:25 The AFIRE Pulse: institutional investors from 24 countries02:22 From real estate to infrastructure: data centers lead04:56 Generational capital and the long-term US view05:28 Europe and the Middle East: a pause in new investment06:11 Data centers: top opportunity and top risk07:17 Office climbs to #3 behind industrial and multifamily09:15 Office as the buy of the decade: lessons from retail11:37 Buying office at $64 a foot: the low-basis play12:27 US economy: strong growth, 90% see politics as a negative14:52 Japanese capital, the yen, and long-term thinking15:42 Why the US wins: nearly half of institutional real estate18:09 The housing shortage and affordability19:07 Build-to-rent, single family rentals, and manufactured housing24:02 Household stress: 19% now at the breaking point25:19 The biggest headline: energy infrastructure27:44 Beyond the capital stack: new players in real estate29:07 Tariffs, reshoring, and immigrant labor costs31:48 Visas, universities, and where capital follows33:35 Location, location: why investors favor vibrant cities Connect with Gunnar Branson:https://www.linkedin.com/in/gunnarbranson/AFIRE Website: https://www.afire.org/ Connect with Michael Bull & The Show:Michael Bull, CCIMBull Realty, Inchttps://www.linkedin.com/in/michaelbull/ For more commercial real estate market data, sector forecasts, and video episodes, visit CREshow.com. America's Commercial Real Estate Show is brought to you by our proud sponsors. TCN Worldwide: Commercial real estate property management, leasing, and sales solutions across the US and globally. Learn more: https://www.tcnworldwide.com Build Out: The ultimate product suite for commercial real estate brokerage firms looking to streamline their business. Learn more: https://www.buildout.com Bull Realty: Regional commercial real estate brokerage services headquartered in Atlanta, delivering market intel and strategies. Learn more: https://www.bullrealty.com Commercial Agent Success Strategies: Twenty-one cloud accessed commercial broker training videos with slide deck action notes. Learn more at https://www.commercialagentsuccess.com/ #CommercialRealEstate #CRE #ForeignInvestment #RealEstateInvesting #AFIRE #DataCenters#Infrastructure #OfficeMarket #Multifamily #IndustrialRealEstate #AffordableHousing #CREShow