In each case, these foreign investors timed their stock purchases to match the strong rebound of stock prices across the REIT industry in the wake of the burst technology stock bubble. However, the survey also detected a significant change in German investor sentiment, which suggested that German investment would decrease this year. In addition, other opportunities are competing for deutsche marks in Germany. The other countries follow in smaller numbers. Office properties remained the most sought after by foreign investors, with multi-family replacing retail in the second slot and industrial taking over third place.
Hotels continue to rank last in the estimation of foreign investors.
Today, the general attitude toward the U.S. real estate market by non-U.S. investors seems based on two perceptions. First, some were burned in the late '80s and early '90s and remain leery of aggressively pursuing opportunities in REITs or even the general U.S. real estate market. Second, many are concerned about the slowing U.S. economy. As a result, these investors are proceeding with caution. William E. Hauser, portfolio manager with HVB Capital Management in New York, agrees.