Foreign investment in U.S. real estate totaled $45 billion in 2014, according to the research done by Real Capital Analytics. Developing U.S real estate has been a popular option for foreign investors more recently because of the high yields of 7-8% on their investment, compared to other bonds that produce returns of around 2%. Asian and Middle Eastern corporations are outbidding U.S. groups to fund developments in New York City and L.A. These overseas development companies are looking to diversify their real-estate portfolios as well as diversify the economy they are placing their funds in. Though developing a property is a riskier choice when compared to purchasing an existing leased property, foreign investors are chasing the higher returns that can exist with building a new development in a prime location.