Norway Ranks Second Among Top Foreign Commercial Property Buyers
Norway climbed sharply to second spot among international buyers of U.S. commercial real estate this year as its $870 billion sovereign wealth fund snapped up building portfolios across the nation, according to a report on Bloomberg.
The report, which cited data from New York-based research firm Real Capital Analytics Inc., stated that Norway’s sovereign wealth fund, which collects revenues from its oil and gas sector, spent over $3.2 billion in New York and San Francisco on commercial real estate assets. The sovereign fund also assumed debts, the report added.
Norway aims to invest five percent of its wealth fund in real estate markets worldwide, the report noted. Michael Knott, managing director of Green Street Advisors Inc., noted that the country is willing to invest in U.S. real estate even if it means lower yields for them.
“There’s an element of perceived safety in a hard asset in the United States, in New York City, that is harder to replicate in other alternatives,” Knott told Bloomberg. “Norway has the ability to hold indefinitely and would probably not be troubled at all by a low going-in yield.”
Norway has more than doubled its investments in the U.S. property market since last year. The country ranked sixth in terms of real estate transactions then, the report said.
It entered the U.S. property market after increasing its stakes in Europe’s real estate market for two years, a 2012 report on The Wall Street Journal said. It also noted that the country “arrived at a time” when valuations were towering in New York and other major cities, and myriads of foreign property investors were shopping around.
Canada remains the top foreign buyer of U.S. real estate, research from Real Capital said. According to the report, the country has bought assets worth $8.3 billion so far this year.
Real estate agents selling commercial properties in major cities can tap Norwegian investors by expanding their market reach through disruptive virtual tour technologies. Realbiz Media Group, Inc. (OTCQB: RBIZ) is a Florida-based digital media company that develops proprietary video marketing software that agents and their brokers can use to promote their virtual tour listings online. The company is known for its Virtual Tour Program and consumer site Nestbuilder.com.
The Virtual Tour Program allows real estate sellers to create virtual tours and presentationsthat are optimized for mobile viewing and could be syndicated through social media for only $29.95 a month.
The program features a video search engine optimization (VSEO) tool that automatically generate meta tags and descriptions for virtual tours and listings that agents have uploaded to the platform so that they would be found easily by consumers online. It also has tools for creating QR codes, e-flyers, and seller reports as bonus features.
Nestbuilder.com is a consumer property listing site centered on virtual tours. The web site makes a great platform for hosting real estate agents’ listings and for creating personalized agent profiles that help agents widen their reach and build their online reputation. It utilizes Nestbuilder Agent, a patented marketing technology developed by Realbiz Media.
Nestbuilder.com’s agent and listing pages also features a contact form as well as social media buttons that connect agents with their consumers easily.
Realbiz Media’s platforms, applications and web sites feature social integration, which allow agents to cross-publish their posts to social networks like Twitter, Facebook, and Pinterest.
To learn more about Realbiz Media and its products, contact email@example.com or call 1.888.REAL.BIZ (888.732.5249).
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.