US strengthens grip on investment as Brexit costs London

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
2 Los Angeles $7,259,785,757
3 London $6,497,014,356
4 San Francisco $5,760,203,775
5 South Florida $4,983,573,632
6 Hong Kong $4,837,250,279
7 Washington DC $4,773,984,492
8 Boston $4,747,894,581
9 Denver $4,301,880,689
10 Chicago $3,661,900,654
11 Seattle $3,400,665,955
12 Tokyo $3,191,934,855
13 Dallas $2,782,491,783
14 Berlin-Brandenburg $2,679,546,345
15 Atlanta $2,588,912,651
16 Paris $2,422,905,157
17 San Diego $2,397,876,717
18 Philadelphia $1,986,737,738
19 Houston $1,669,367,662
20 Birmingham $1,555,262,508
21 Shanghai $1,487,669,817
22 Amsterdam/Randstad $1,425,705,228
23 Vancouver $1,418,681,464
24 Austin $1,335,085,952
25 Charlotte $1,269,191,356
26 Frankfurt/Rhine-Main $1,260,814,803
27 Minneapolis $1,204,060,793
28 Raleigh/Durham $1,192,565,584
29 Phoenix $1,185,895,211
30 Kansas City $1,180,758,459
Source: Real Capital Analytics

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