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It looks like commercial real estate has officially hit the bargain bin for international investors in the United States. From an overpriced asset last year to the discount bin.

Noted Saudi investor Prince Faisal has created a 1.1 billion dollar fund to invest in commercial properties in the United States and the United Kingdom. This is good news. Instead of a slow drop, commercial real estate plummeted from it’s highs and is already starting to form a base. Investors know they have a short window where there are bargains and are moving quickly.

This is opposed to residential which has had so much meddling and tweaking from the government no one is sure what the true market is, creating a much longer slowdown and more uncertainty for investors.

An investment manager part-owned by the Saudi royal family is planning to invest a chunk of its assets in UK and US commercial property, according to Prince Faisal bin Salman bin Abdulaziz, its chairman.
For Jadwa Investment, commercial real estate was, with natural resources, the most appealing investment opportunity, Prince Faisal told the Financial Times in an interview…
Fadi Tabbara, the fund’s chief investment officer, said that it wanted to expand abroad to continue diversifying revenue streams so as to make them “less sporadic and more predictable”.
Brad Bourland, Jadwa’s chief economist, said: “We are focusing on areas where there is currently a favourable exchange rate, attractive asset prices and a historical connection. The US and UK markets meet these criteria the most at the moment.” FT.com

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