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Commercial Real Estate

  • With the year 2007 behind us and moving forward with an optimistic outlook for 2008, foreign investors are pouring record amounts of money in the United States. Markets such as manufacturing, pharmaceutical, and real estate are the beneficiaries of such investments. Last year, a record of $414 billion went into securing stakes in American companies and more is expected in 2008.

    The United States is for sale at a discounted rate for much of the world. With the magnitude of such large foreign investments coming into American firms, foreign investment might be the ticket to save the US economy from going into a serious recession by infusing hard-luck companies with cash and keeping them in business. Our goods are available at bargain prices and the world is taking advantage of the opportunity. The result is a massive boom in exporting, particularly to Third World countries that are desperately trying to become Second World countries and need our goods to do so because they do not have the resources to create them themselves. This will indeed help our GDP (Gross Domestic Product) to grow at a rapid pace.

    Wall Street banks like Merrill Lynch, Citigroup and Morgan Stanley, which have sold stakes to foreign investments to compensate for substantial losses sustained in the mortgage markets, were also the beneficiaries of such foreign investment. The weakened dollar has made American companies and real estate in the United States cheaper in global terms. As quoted by Jeffrey E. Garten, a trade expert at the Yale School of Management, “The United States has not ever been on the receiving end of this before.” With weakness in the US dollar, foreign investment firms are buying financial and real estate assets at well under book value. For anyone who has been waiting on the sidelines for the past few years and has the liquidity to make some bold and calculated moves, now is the time and the US is the place. The year 2008 would be a good entry point to pluck bargains in commercial real estate markets and harvest the profits in 2010 and beyond. Start by making an initial investment by retaining the services of a good, successful and ethical commercial broker who is knowledgeable about the market and has the expertise to help you in making sound real estate related decisions.

    For more information contact Art Farmanali, SIOR: 702-363-7600

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