Survey: Investors Eyeing Higher-Risk U.S. RE

Global real estate investors are planning to include higher-risk properties in their U.S. real estate acquisitions in 2007, according to the Association of Foreign Investors in Real Estate, Washington, D.C.About 30% of the respondents to the AFIRE survey said they would consider new property types as part of their U.S. investment strategy, including infrastructure, resorts, housing for senior citizens, storage, student housing, research and science projects, and the acquisition of real estate companies. "The findings reflect investors' desire to invest in U.S. real estate despite macro uncertainties and competition from U.S. institutional investors," said François Ortalo-Magne, who holds the Robert E. Wangard Chair in Real Estate at the University of Wisconsin's Center for Real Estate. "Consequently, they are showing a greater willingness to consider diversification strategies into secondary markets, outside of the core property types, and with creative financing and ownership structures." Respondents identified New York, Washington, Los Angeles, San Francisco, and Seattle as the most attractive cities for real estate investments.