The State of Cross-Border CRE Investments

Posted on January 15, 2020

According to Real Capital Analytics, foreign investment in U.S. commercial real estate decreased more than 50 percent in 2019 from the prior year. One reason for the decline is a notable drop in capital investments coming from mainland China, which, researchers note, previously “represented an outsized presence in the U.S.” following a slew of high-profile acquisitions between 2014 and 2017. In fact, a June, $18.7 billion sale of U.S. property owned by Chinese investors helped to “turn cross-border investors to net sellers of U.S. commercial real estate for the first time since 2012.”

But not all countries are pulling back from U.S. markets. In 2019, Canada led the world in capital investments in U.S. commercial property, followed by Germany with South Korea, Japan and Singapore exceeding those from China.

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