Los Angeles pipped London to become the second biggest metropolitan area for activity in the first quarter of the year.
Sales volumes in the City of Angels hit $7.2bn in Q1, compared with $6.4bn in the UK capital during the same period, according to data from Real Capital Analytics.
Investment volumes between January and March also saw the South Florida region shoot up into the top five.
“It is fair to say that the investors are drawn to the safety of the US and the UK,” says Jim Costello, senior vice-president at Real Capital Analytics. “But there is more than just that.
“Because so many investors look at these knowledge hubs in the west, like London, New York, Boston and LA, they are simply more liquid. In London and New York in particular, if an investor wants to sell an asset, there will always be some investor willing to buy it at any point in the market cycle.
“But even a place like LA does well. And particularly with investors from Asia. The leading cross-border buyers for US commercial real estate are Canadians and LA is no different. But the next four investors on the list are from Australia, Singapore, China and Hong Kong. One of the other things that makes LA attractive to these investors is its location.”
|Rank||Market||Q1 2016 sales volume|
|1||New York City||$14,299,661,253|