The research project outlined proposes to investigate the relationship between the market significance of foreign investors in major office markets and commercial real estate capitalization rates. Drawing upon a database of commercial real estate transactions, it is proposed to model the determinants of market capitalization rates with a particular focus on the significance of the proportion of market transactions involving foreign investors. Whilst there are strong a priori grounds to expect positive price effects from foreign investment, the research will provide quantitative estimates of the extent of potential effects.