California continues to be a hotspot for real estate, in both the residential and commercial real estate markets. One of the major commercial real estate transactions that has taken place recently is the purchase of a technology campus for a whopping $725 million. Alexandria Real Estate Equities just purchased the property from DivcoWest.
In California, there has been an ongoing boom in the area of commercial property. However, the number of commercial real estate transactions appears to have been dropping slowly, especially in the areas of office space and retail. Still, areas of the real estate market that continue to be favorable are multi-family and industrial markets.
The desire for U.S. real estate remains strong in other parts of the world. However, when it comes to residential real estate, international purchasers are transitioning from focusing on luxury properties to eyeing properties that are less pricey. This might be because of today's higher residential prices in California and other parts of the country, as well as the stronger U.S. dollar, both of which cost buyers from other countries more.
Tangible assets this year are receiving more emphasis as an alternative investing option for investors of high net worth. These tangible assets include commercial and residential real estate properties in California and other states. A recent survey showed that about 60 percent of high-net-worth individuals felt optimistic about investment in land and timber and in real estate compared with other investment options, such as private equity, hedge funds, bonds and stocks.