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Region XI: Global MarketsNew Mexico Albuquerque: Rich in technology, healthcare, and University...
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Region XI: Global Markets Janet Branton Senior Vice President, Commercial & Global Services National Association of REALTORS®
Transcript of Region XI: Global MarketsNew Mexico Albuquerque: Rich in technology, healthcare, and University...
Region XI: Global Markets
Janet BrantonSenior Vice President, Commercial & Global Services National Association of REALTORS®
REGION XILargest NAR Region by square mileage
Land, resort, views, cities, culture
You don’t have to live in a high-end resort town to take advantage of international business coming in!
Global clients are:
Foreign buyers living abroad.
Immigrants.
First-generation Americans.
Americans buying abroad.
Last year, foreign buyers spent
$235 BILLION on U.S. properties
$103 BILLIONRESIDENTIAL
Source: Real Capital AnalyticsSource: NAR
$132 BILLIONCOMMERCIAL
Global clients:
Spend more money $477,462 average purchase price
Pay in cash50% of international purchases
Refer more business47% from referrals
Top countries buying U.S. real estate:
$0$5
$10$15$20$25$30$35
Canada China India Mexico UnitedKingdom
201420152016
Dollar Volume of Purchases by Country(in billion dollars)
U.S. is still an attractive destination
U.S. property remains affordable compared to international destinations
Safe, secure investment
Credit standards in the U.S. favor cash buyers
Why didn’t international clients buy in the U.S.?
Don't knowOther
Loss of home country benefitsInsurance costs
Condo/maintenance feesExposure to US tax laws
Property taxesImmigration laws
Cannot move moneyExchange rate
Could not obtain financingCost of property
Could not find a property13%
12%
6%
2%1%
9%6%
9%9%
6%
5%5%
18%
What’s next?
Geo-politics influence international purchases
U.S. immigration policy remains unknown
EB-5 (immigrant investor visa) up for renewal in April
What brings them to the U.S.?
Education
Job relocation
Investment properties
Friends/family already here
Connect to the groups bringing international business to your area
Education
Local universities: admissions, housing, international advisors
Community colleges: ESL programs
Job relocation
Economic Development Office, Chamber of Commerce
International corporations
Commercial brokers
Investment properties
Resorts
Tourism bureau
Image: Courtesy Christie’s International Real EstatePark City, Utah
Cultural Groups
Your own network!
Family/friends/familiarity
Grocery stores
Connecting to Global BusinessNAR Resources
State by State business reports
Local Market Assessments
Profile of International Home Buying Activity in U.S. Real Estate
nar.realtor/global
Connecting to Global BusinessWyoming
150 global companies employ 8,400 workers
40% are in manufacturing industries
Most from United Kingdom
“Think Global” program aims to doubleFDI in Wyoming
wyomingbusiness.org/STEP
BusinessWyoming Employment in
Foreign-Owned Companies Number of employees by country of origin
Connecting to Global BusinessWyoming
International Students
In 2016: 1,157 students enrolled in Wyoming colleges and universities
Contributed $22 million to the Wyoming economy
947 international students at University of Wyoming
China, India, Canada, Saudi Arabia, Nepal were leading countries of origin for foreign students
iie.org | Open Doors Fact Sheet by State
Connecting to Global BusinessWyoming
Tourism/Luxury/ResortDomestic & international visitors spent $3.3 billion in 2015
Travelwyoming.com offers international page with videos, contact information for representatives who collectively speak 11 languages
Luxury market: Median home prices in Jackson Hole roughly $700,000Tip: market to Chinese luxury buyers – they study the national park in their 8th grade textbooks!
Buford, Wyoming: Population 1. A Vietnamese businessman!
Connecting to Global BusinessArizona
Real Estate
Perennial top 5 in NAR’s Profile of International Activity in U.S. Residential Real Estate
Foreign buyers purchased over $4 billion in Arizona homes
Attractive to Canadian buyers: 19% of Canadians buying in U.S. choose Arizona
Mexican buyers: Choose Arizona for climate, proximity to Mexico, and existing Hispanic influences
Connecting to Global BusinessArizona
Business
Phoenix - one of Brookings Global Cities
More than 200 Canadian companies in Arizona
Ranked #18 in U.S. for H1B Visas
7 Foreign Trade Zones in Arizona
Arizona Employment in Foreign-Owned Companies Number of employees by country of origin
15,600
13,300
8,200
8,100
7,900
Canada
United Kingdom
Germany
Japan
France
Connecting to Global BusinessArizona
International Students
Ranked #13 in U.S. for international students with over 22,000
ASU has the highest number of foreign students with 12,751
35% from China, 19% from India Also strong presence from Saudi Arabia, Kuwait, and South Korea
Connecting to Global BusinessArizona
Over 5.7 million international visitors to Arizona in 2015
Mexico highest volume with nearly 4 million visitors
Most international visitors ranked “Vacation/Holiday” as their primary reason for visiting, except Mexico who ranked “Visit Friends/Relatives” first.
New York Times named Sedona a top destination in the world.
Tourism/Luxury/Resort/Commercial
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Connecting to Global BusinessArizona
Connecting to Global BusinessUtah
Business
Most linguistically diverse state in the U.S. with more than 130 languages spoken in business daily.
Dubbed “the next Silicon Valley”
Salt Lake, Provo, and Ogden have all been in top-10 lists for economic development, as well as tech and industry booms
State government and business community have worked to propel Utah onto the world economic stage.
Connecting to Global BusinessUtah
Education
8,302 foreign students in Utah
Spend over $190 million in the state
University of Utah – 3,017 foreign students
Students come from China (23%), South Korea, Saudi Arabia, India, and Canada
Connecting to Global BusinessUtah
Tourism/Luxury/Resort/Commercial
4 of the top 20 ski resorts in North America are within one hour of SLC airport
Home to 5 national parks, 7 national monuments and 43 state parks
Named the “happiest state in the U.S.”
State government and business community have worked to propel Utah onto the world economic stage.
Connecting to Global BusinessNevada
BusinessMore than 200 foreign companies employ 40,000 workers in Nevada
Strongly pro-business: low government regulation, costs to incorporate, no taxes on corporate income or gross receipts.
Tesla’s Gigafactory: Panasonic is a major partner, already bringing new Japanese families to Nevada.
Nearly 1 in 5 Nevadans are immigrants
Reno: one of the nation’s busiest distribution hubs
Connecting to Global BusinessNevada
Education
Over 2,500 foreign students in the state.
Over 1,100 at UNLV alone
Students from China, South Korea, Japan, India, Brazil
Nevada’s Optional Practical Training (OPT) program allows students to work full time in U.S. after graduation.
Connecting to Global BusinessNevadaTourism/Luxury/Resort/Commercial
Las Vegas: hospitality, gaming and tourism are major attractions for international buyers.
Weather, entertainment, leisure activities often at a fraction of the price for comparable homes along West Coast.
Reno: “The biggest little city in the world,” known for proximity to ski resorts and casinos.
Lake Tahoe: winter and summer playground!
Connecting to Global BusinessColorado
#3 #3 #1Best state for Best state Best doing business economy labor pool24/7 Wall Street, 2016 Business Insider, 2015 Forbes, 2015
choosecolorado.com
2014-2015: Foreign investment more than
doubled in Metro Denver
Connecting to Global BusinessColorado
trade.gov
Countries with significant real estate investments in Metro Denver:
Bahrain, South Korea, Hong Kong, Germany, Mexico, Chile
(in addition to longtime top investor, Canada)
Source: MetroDenver.org
Connecting to Global BusinessColorado
Foreign Students in ColoradoUniversity of Colorado- Boulder 2,951Colorado State University 2,305University of Denver 1,688University of Colorado - Denver 1,446Colorado School of Mines 875
Total: 11,346Source: iie.org
Connecting to Global BusinessColorado
10% of Colorado’s populationis foreign-born
Nearly 300,000 (54%) born in Latin America
881,148 residents speak a language other than English at home
NAR 2016 State-by-State International Business Reports
Connecting to Global BusinessColorado
Those numbers reflect Colorado’s rich cultural diversity.
GET INVOLVED! denver.org/events
Asian Chamber of Commerce
German-American Chamber of Commerce
French-American Chamber of Commerce
Hispanic Chamber of Commerce of Metro Denver
Annual Colorado Dragon Boat Festival
Connecting to Global BusinessNew Mexico Business
San Jeronimo and Mexico’s ‘maquila’ industry: Foxconn (Taiwanese electronics)
Triggered need for supply manufacturers:CN Wire (Turkish manufacturer) CertoPlast (German automotive supplier)Virgin Galactic (UK-based)
Santa Teresa: Union Pacific Railroad terminal, fueling facilityForeign Trade Zone expansion
Connecting to Global BusinessNew Mexico Business
Economic Development Offices: Mesilla Valley Economic Development Alliance mveda.com
International Business Accelerator in Santa Teresa nmiba.com
New Mexico Border Authority (facilitates various trade opportunities at the border) nmborder.com
Connecting to Global BusinessNew Mexico
Albuquerque: Rich in technology, healthcare, and University firms hiring H1-B and green card workers.
New Mexico schools: Attract students from China, Mexico, India, Saudi Arabia, and Iran.
Connecting to Global BusinessNew Mexico Second-home and resort
Santa Fe: UNESCO’s Creative Cities, globally familiar art destination
Santa Fe Council on International Relations (CIR)
Taos Ski Valley: World-class ski area, home to one of the top ski schools in America. Founded by German pioneer Ernie Blake
NAR ResourcesInternational Network
89 partner associations in 68 countries
President’s Liaison to each country
International REALTORS®
Certified International Property Specialist (CIPS) designees in 45 countries
1,500 international guests at REALTORS® Conference & Expo
More from NAR
Complete transactions seamlessly, reduce risk
Education/Networking/Business Tools
Network: 45 Countries
Networking and Conferences LOCAL GLOBAL
Networking
Local clubs, schools, community events
Chamber of Commerce
Global Business Councils at Local/State REALTOR® Associations
NAR conferences, travel abroad
NAR’s Global Alliances (89 partners in 68 countries)
CIPS
Conferences
Local conferences (i.e. AREAA)
Activities through Local/State REALTOR® Associations
Global Expos (i.e. Expo Real, MIPIM)
NAR Conferences
Meetings & Events calendar on nar.realtor/global
REALTORS® Conference & ExpoNovember 3-6 | Chicago
20,000 total attendees1,500 international attendeesCountry networking hours Global Day Full day of programming in Spanish
www.nar.realtor/Conference
Thank you! Find all NAR resources, information to help you connect to global business at:
nar.realtor/globalRESEARCH | EVENTS | EDUCATION | NETWORKING
Questions? Email me! [email protected]
