June 1, 2018
New research by Real Capital Analytics (RCA) shows that cross-border investors increased acquisitions of assets in the U.S. into 2018. One significant transaction, the GLP buyout by a JV among several Chinese investors, illustrates the findings, while also easing fears that Chinese government restrictions would halt capital outflows from China.
RCA commercial real estate economist Jim Costello says the cross-border investment pack was led by Canadian investors ($20.3 billion), which account for roughly a third of all acquisition volume in the U.S. through the first quarter of 2018. Investors from China were the second largest buyer group ($8.9 billion), followed by those from Singapore ($7.7 billion).
The favorite market for cross-border investment was Manhattan, with more than $8 billion in deal volume in the 12 months through Q1 2018. Next in line, with roughly $3 billion in sales volume each, were Houston, Los Angeles and Washington DC.
Sales volume in the industrial sector grew grew 97% year-over-year, though CBD office and apartment were the most sought-after property sectors overall, points out Costello.
For comments, questions or concerns, please contact Dennis Kaiser