December 26, 2007
Foreign Buyers Snap Up U.S. Properties
NPR News, WBUR-FM Morning Edition

STEVE INSKEEP, host: So, other business news: the weak dollars fueling a shopping spree and commercial real estate. This year, foreign investors snapped up more than $43 billion worth of American properties, almost double of what they bought last year.

From member station WBUR in Boston, Curt Nickisch reports.

CURT NICKISCH: Here in downtown Boston, where Paul Revere ran his silversmith shop. Again, the British are coming. This time, they’re not the only ones.

Ms. LISA CAMPOLI (Co-chair of Capital Market Groups, Meredith & Grew Inc.): The Irish have been particularly dominant in Spanish, Dutch, Middle East. So it’s a very diverse group.

NICKISCH: Lisa Campoli oversees sales for the commercial real estate broker Meredith & Grew. She says eight Boston office buildings have sold this year to buyers abroad; two years ago, none did. Of course, back then, the dollar was stronger and they would have cost more. But even without the improved exchange rate, U.S. commercial real estate is a great market, says Dave Greaney. He heads a group of Irish investors, who put more than $200 million into Boston properties.

Mr. DAVE GREANEY: Any of the investments have to stand alone in dollar terms. The yields have to make sense; the returns have to make sense in dollar terms. The currency placed really just an additional kicker to the whole transaction.

NICKISCH: Still, that kicker is playing more of a role in this globalized era – now that capital flows more freely across borders. Dan Fasulo runs the market research firm, Real Capital Analytics.

Mr. DAN FASULO (Managing Director, Real Capital Analytics): The current global economic expansion is creating a tremendous amount of wealth all around the world. And right now, this capital is looking for a home.

NICKISCH: Another reason it’s finding a home in American office buildings is the recent credit crunch here. It’s harder now for domestic buyers who have to borrow. Foreign investors tend to have more cash on hand, cash that’s going further with the weak dollar.

For NPR News, I’m Curt Nickisch in Boston.