Detroit Commercial Real Estate’s Big Comeback

Detroit Commercial Real Estate Don’t count Detroit commercial real estate as down and out. In fact, the Motor City is on the verge of becoming one of the greatest comeback kids the nation has ever seen – thanks, in no small part, due to the efforts of a small group of  commercial real estate investors.

Detroit is still a long way from its heyday. In the 1950s, Detroit was the wealthiest city per capita in the entire world. The strength of the auto industry bolstered the local economy, and the population swelled to an estimated 1.85 million people. In the decades that followed, de-industrialization crippled Detroit’s economy. As industry fled, so did residents. The population shrunk to just over 670,000. By 2013, Detroit’s economy had weakened to the point where the city was forced to file for Chapter 9 bankruptcy protection – the largest city to file for bankruptcy in U.S. history.

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How Foreign Investment in Student Housing is Driving the Sector’s Record Growth

How Foreign Investment in Student Housing is Driving the Sector's Record Growth

Foreign investment in student housing is on the rise for a number of reasons directly tied to the reputation surrounding American higher education.

Between 2000 and 2015, enrollment in U.S. undergraduate degree programs increased by 30 percent, from 13.2 million to 17.0 million. By 2026, that number is expected to increase to 19.3 million. Foreign-born students are making a significant contribution to this increase. International undergraduate enrollment has increased more than 17 percent and is expected to continue its double-digit climb over the decade to come.

And these trends are causing a boom in real estate’s student housing sector, particularly among foreign investors.

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Foreign Commercial Real Estate Buyers Flock to U.S. Hospitality Sector

As society becomes more globalized, people are traveling more – whether for work or pleasure. By some estimates, global travel is going to increase by 35% over the next decade. This has been a boon to commercial real estate’s hospitality sector, particularly here in the United States. Foreign commercial real estate  investors have picked up on the opportunity hospitality offers as an asset class, and in recent years, have started flocking to this market segment.

In 2015, U.S hotel transactions exceeded $43 billion. During the first three quarters of 2015 alone, foreign investors pumped $6.3 billion into hotel investments—or 20% of total deal volume. The amount of cross-border capital flowing to the hospitality sector was up 165% year over year.

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