In 2015, Jacksonville's commercial real estate market saw foreign investment finally reach pre-recessionary levels. While Jacksonville is still lagging behind places like Tampa and Orlando, last year's foreign investment reached $183,000,000. But considering that the state sees about $4.3 billion from foreign investors, that leaves plenty of room for improvement.

At least at the state-wide level, 2016 is poised to be an event better year for Florida than 2015 was. As 2015 closed, Florida was ranked #4 nationwide in terms of "cross-border investment." At the close of the 1^st quarter of 2016, Florida was ranked #3.

Who Is Investing & Where
Since 2007, the two most active countries for foreign investment have been Canada and Israel. Canadians are seeking multi-family investment and retail locations. Israelis are focused more on multi-family. In fact, multi-family deals are increasingly attractive to outside investors. Since 2007, multi-family transactions have made up nearly half (44%) of all foreign investment across all property types.

There are a number of factors that are contributing to these state-wide increases. We have been very fortunate to have a considerably strong economy, and that growing economy has led to population growth. Furthermore, Florida has a built-in brand that makes investment returns more secure and predictable – despite threats like the Zika virus.

More locally (and specifically) the Port of Jacksonville's foreign trade zone has emerged as the third best worldwide, and that's pulled directly from a foreign direct investment magazine. What this means for foreign investors is that goods moved through our foreign trade zone are duty and excise-tax free as long as they will ultimately arrive at a destination outside of the US borders. There are also fewer headaches in the paperwork department (where customs can be handled weekly versus daily) and certain benefits for goods that are imported into the US through our port.

What This Means for You
Although the majority of investment is in multi-family and retail properties, that doesn't mean foreign investors are totally overlooking single-family residential homes. Best of all, when they are buying, they aren't only looking for high-end luxury homes. Instead, they're scooping up more modest (and affordable) properties. And when they're doing it, Florida is beating out California, Texas, Arizona and New York as their investment destination.

As you'll soon see in our YTD market overview, this could translate into new opportunities for you! Homes are selling fast (with only an average of 92 days on market) and for great prices. The sales price as a percentage of list price is sitting at 161.7%. That means a home that is listed for $200k might actually sell for $323,400!

If you're thinking it might just be time to sell, contact me today so that we can help position you for the best possible return on your investment!
 
Sources:
http://jaxusa.org/about/news/jacksonville-foreign-trade-zone-ranked-third-in-the-world
http://www.bizjournals.com/jacksonville/news/2016/07/19/foreign-investment-in-jacksonville-cre-markets.html
http://www.cnbc.com/2016/07/06/foreign-buyers-flood-us-real-estate-but-buy-cheaper-homes.html