May 31, 2019
The latest U.S. Cross-Border Investment research shows investors kept their hands on their checkbooks in Q1 2019. A report by Real Capital Analytics (RCA) revealed direct acquisitions by cross-border investors in the U.S. dropped by roughly half compared with a year ago.
RCA’s commercial real estate economist Jim Costello pointed out significant portfolio and entity-level deals, which had characterized much of the cross-border activity during 2018, were largely absent. Deal activity by Canadian investors dropped by 53% year-over-year in the first quarter, he wrote.
Total direct acquisitions by cross-border buyers in the last 12 months totaled $83 billion, with the bulk of activity occurring in 2018. Deal activity from cross-border investor groups dropped by nearly 50%, notes RCA.
Entity-level deals comprised less than 10% of all cross-border activity, though deal volume from Middle Eastern investors rose to nearly $2 billion.
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