The Big Apple and the nation's capital edged out other world cities as the top spots for foreign commercial real estate dollars, according to a trade group survey released Monday.
The Association of Foreign Investors in Real Estate said foreign investors named New York as the No. 1 city for commercial real estate investment, up from No. 2 the prior year. Washington, D.C., and London tied for second, while Paris followed at fourth and Shanghai at fifth.
The results marked the first time U.S. cities have taken the top two spots since the category was added to the annual survey.
The survey also showed that foreign investors overwhelmingly believe the U.S. offers the most stable and secure real estate investments despite recent credit market disruptions and a slowing economy.
The U.S. market also offers the best opportunity for capital appreciation, investors said, followed by China, India, Russia and Mexico.
On average, investors said U.S. assets will make up more than 50 percent of their real estate acquisitions this year, roughly the same as last year. The weak dollar has not yet prompted any increase in U.S. allocation, 85 percent of respondents said.
U.S. retail ranked as the most preferred property type among foreign investors. Hotels came in second, followed by industrial, multifamily and office.
The survey was conducted in the fourth quarter of 2007 among the group's 200 members.