According to a recent CBRE report, Chicago ranks as the seventh largest real estate investment market in the world, with a value of $300 billion.
Tokyo, New York and Los Angeles are the world’s largest commercial real estate investment markets, with the global stock of investable assets standing at $27.5 trillion.
Chicago is the fourth largest market in the U.S., behind New York, Los Angeles and San Francisco.
“Chicago continues to be an attractive opportunity for local, national and international investors, due to its diverse economy, strong growth prospects, highly educated workforce and collection of trophy assets,” said Blake Johnson, executive vice president of CBRE. “The market draws top talent from a very healthy university system, including such institutions as Northwestern University and the University of Chicago, and has added 48,000 new office-using jobs since 2011. This has resulted in an extremely active and growing market, which supports one of the most diversified economies in the country.”
CBRE examined the relationship between city market size and capital flows into real estate for 122 cities around the world. The research found that there is a high correlation between the size of a city’s real estate stock and the volume of investment into that city.
- Tokyo is the world’s largest single market with a total value of investable real estate of $711 billion, followed by New York ($657 billion) and Los Angeles ($482 billion).
- Paris ($342 billion) and London ($334 billion) are the biggest European markets.
- The top 10 cities accounted for approximately $4.0 trillion–15% of global investable real estate stock.
- The largest five cities in the Americas (New York, Los Angeles, San Francisco, Chicago, Houston) represent $2 trillion of investable real estate; a figure that can be attributed to the free market nature of its economy and cities.
- Asia Pacific’s five largest cities (Tokyo, Seoul, Osaka, Sydney, Melbourne) amount to $1.5 trillion, although it is worth noting that data was not available for all cities in the region, including China.
- The relatively lower total of $1 trillion in Europe’s five largest cities (Paris, London, Madrid, Milan, Munich) is attributed to the influence of national boundaries, land use planning, and regional support programmes.