The Association of Foreign Investors in Real Estate said its members plan to reduce purchases in America this year because of surging prices for commercial properties.

AFIRE said its members, which have about $300 billion invested worldwide, will trim the percentage of total global real estate acquisitions they will make in America to about 55% this year from 71% in 2004. Investors are particularly deterred by high prices for “trophy buildings,” or landmark office towers, the Washington-based group said today.

Members plan to divert investment to Japan, Eastern Europe, and Australia, AFIRE said. Real estate buyers had been willing to pay higher prices for American commercial properties as the cost of financing dropped. In 2004, the Bank of America Plaza office tower sold in downtown Los Angeles for $440 million to Trizec Properties Inc.

“There is enormous competition for trophy buildings, and that has pushed prices so high, it’s hard to get the rate of return they need for investors,” said a spokeswoman for the group, Kathryn Hamilton, said.

Almost 60% of respondents in a survey of AFIRE’s members said it has become “very difficult” to find attractive real estate opportunities in America, the group said. That compares with 38% in 2003 and 32% in 2002. AFIRE said it has 160 members representing 17 countries, including investment firms as well as attorneys.

“They want higher returns than they’re able to get here,” said the executive managing director at New Yorkbased real estate services provider Cushman & Wakefield, Timothy J. Welch.

“There’s no disputing it, historically these are as aggressive prices as we’ve ever seen.”

AFIRE’s 13th annual survey was conducted by Kingsley Associates.

According to the Bureau of Economic Analysis, part of the U.S. Department of Commerce, there was $141.1 billion of American commercial real estate owned by foreign companies in 2002, the latest year for which data is available.

While foreign companies plan to re duce their investment, they remain interested in owning American real estate, which they consider to be a “stable and secure” investment with the “best opportunity for capital appreciation,” according to AFIRE’s survey. For the third year, Washington ranked as foreign investors’ top global investment and the best city for investment in America.

Washington has the lowest office vacancy rate in America. In the third quarter, the latest period for which data is available, downtown Washington had a vacancy rate of 7.5%, almost half of the national average of 14.8%, according to Cushman & Wakefield. American companies such as Equity Office Properties Trust and Brookfield Properties Corp. have been buying real estate in the city.

For the first time the AFIRE survey started in 1992, cities in Southeast Florida ranked among the top five American cities for foreign investors. The Miami-Fort Lauderdale-West Palm Beach areas were in fifth place, following Washington, New York City, Los Angeles, and San Francisco.

For the second straight year, apartment and retail properties, which tied for the no. 1 ranking, were foreign investors’ top choice for investment. Office properties moved to second place from fourth place last year and had their best ranking since 1999, when they were the top choice for investment.

Hotels and industrial properties were ranked third and fourth, respectively, unchanged from last year, AFIRE said.