Direct investment in New York City commercial real estate increased some 50% in 2018, but it wasn’t enough to put the Big Apple back atop a list of global leaders a year after it was dethroned by London, a recent JLL report found.
Despite Brexit and its uncertainties, London held the top spot on JLL’s list of leading cities for CRE investment for a second year ‒ maintaining its lead over New York, which rose to second place in 2018 after dropping down to fourth the previous year.
Who’s Financing New York CRE
Which banks and non-bank lenders are financing the investment in New York City commercial properties behind the scenes?
CrediFi data shows that regional banks based in the New York metro area took the lead on CRE origination in the first nine months of 2018.
New York Community Bank was the top originator, with a market share of 6%.
Los Angeles Direct Investment Drops
Along with New York City, London and Paris, Los Angeles was one of the leading cities for CRE investment worldwide in 2016 and 2017, the JLL report found.
Los Angeles held the No. 2 spot in 2017 but slid to seventh place in 2018. Paris took the No. 3 slot both years.
Total volumes for direct commercial real estate investment rose 4% in 2018 ‒ the most in a decade ‒ and reached $733 billion, the report found.
JLL expects continued investment activity momentum in 2019, citing compelling real estate fundamentals despite low yields, but predicts a decline of 5% to 10% in investment volumes in 2019.
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