German institutions are the second-largest foreign investor group in the United States, after Canada, accounting for more than $3.5 billion (€2.6 billion) of real estate transactions during the past 36 months, according to international real estate adviser Savills.

“Global capital is shifting, and the United States is seeing a substantial increase in capital flows from foreign investors who are investing through direct and indirect channels,” said Robert Stamm, executive managing director of Savills US, in a statement. “Transaction volumes by foreign investors have increased by approximately 50 percent over the past 12 months and, whilst many of these investors are focusing primarily on core, stabilised office and retail properties in gateway cities, investors are also considering top-tier secondary markets that have strong fundamentals, as these are later in the cycle and offer a better risk/return