Asian interest in U.S. commercial real estate is surging

[Anthony Russian]

Asian interest in U.S. commercial real estate is surging.

Driven by the globalization of the commercial real estate asset class, along with much more mobile Asian investment money from high prices and low yields at home, a rising tide of foreign real estate funds is heading for U.S. shores. The prestige gained in U.S. core market acquisitions is another motivator in the renewed readiness to spend in the U.S.

Real estate firm CBRE, recently called the U.S. a top target for Asian real estate investments, citing a swell $3.3 billion invested in just the first quarter of 2015, up from a total $7 billion in all of 2014. Cushman & Wakefield's annual global real estate assessment showed that the U.S. pulled ahead of China as the top investment market in the world in 2014.

That's all good news for commercial property sponsors, but it is also good news for U.S. investors. The barrier to entry for Asian investors is finding the right partners, and that means opportunity for domestic investors.

Many foreign investors need quality partners to invest with, to and through the process. They need partners who can originate deals, underwrite, assemble decks and manage the investments and eventually the ongoing administration needed in a commercial real estate project. Also necessary is a partner that can navigate the U.S. regulatory waters around the investment.

Commercial real estate investors looking for equity can find those Asian partners and establish relationships. But right now there is a lot more money interested in coming in than foreign companies who have found the right partners to come in with.

source Roy Abrams