Largest Group Of Foreign Investors In U.S. Commercial Real Estate

[William Hull]

The biggest foreign investments in commercial real estate in the United States last year relied heavily on China. The majority of over 1 billion dollars in invested were made mostly by Chinese insurance companies. This is only a small portion of the industry which is estimated altogether to be worth over 1.83 trillion dollars. The most attractive regions of the country were on the East and West coasts with almost half of the investments in New York alone while the other half were split between Southern California, Washington state and even a small portion in Chicago. Investments grew in San Francisco while they were reported to be steady from previous years in Los Angeles. Interest in Industrial properties have slowed dramatically while over 8.6 billion dollars was invested in the hotel and office space. However, due to a lengthy and more careful process, Chinese regulations are expected to take longer with more restrictions therefore slowing the outflow of future investments into foreign ventures. According to a senior management director who oversees China's direct investment at Cushman and Wakefield, Xinyi McKinny expects the halt to be temporary since most investors look to long term gains as opposed to short term cash flow.

Key Takeaways:

• With 19.2 Billion in investments the chinese comprise more then half the investors of commercial Realestate for 2016.
• Chinese investors make up 29% of America's total foreign investors they top even Canada which is the second largest investor.
• Chinese life insures make up over 50% of these investors, Mostly in buying up hotels and resorts.

"In a rush to diversify holdings and hedge against a slowing economy and depreciating yuan, Chinese investors have sought better returns overseas and become an important driver in U.S. commercial real estate. Much of their investment in the sector has been through mega deals. Most transactions in 2016, 62% to be exact, were over $1 billion."

Read more: https://www.forbes.com/sites/ellensheng/2017/03/13/chinese-now-the-largest-group-of-foreign-investors-in-u-s-commercial-real-estate/