Phoenix was the sixth largest investment market with $29 billion in 2021, up 137 percent from the prior year. The region ranked No. 4 in industrial investment growth, which climbed 127 percent to $6.23 billion, and No. 2 in retail investment growth at 218 percent to $2.46 billion. While multifamily and industrial investments lead other specialties, office volume nationwide surged 73 percent to $50 billion from COVID-suppressed levels in Q4 2020.
Executive Summary
- Total U.S. commercial real estate investment volume of $296 billion in Q4 2021 brought the full-year total to $746 billion, both record levels.
- Multifamily led all sectors for investment volume in Q4 ($136 billion) and for the year ($315 billion).
- Although Los Angeles and New York had the highest levels of investment in 2021, Sun Belt markets had the strongest year-over-year growth rates, including Las Vegas (232%), Houston (191%) and South Florida (179%).
- Private buyers accounted for the most Q4 investment volume ($143 billion), while REITs/public companies had the highest year-over-year growth rate of 153% to $35 billion.
- Cross-border investment in the U.S. increased by 115% year-over-year to $29 billion in Q4. Foreign capital accounted for $56 billion or 7.5% of total investment volume in 2021.
- Canada was the largest source of foreign capital in 2021 with $21 billion, followed by Singapore with $15 billion.