Foreign investment in U.S. real estate trends lower
Direct foreign investments in U.S. commercial real estate accounted for 17 percent of total transaction volume during 2015, but cross-border activity has trended lower so far this year, according to Marcus & Millichap’s “Special foreign investment report.” International investors accounted for an estimated 11 percent of the investment volume of all U.S. properties sold in first half 2016.
Although cross-border investment made up a smaller share of commercial real estate sales in the first half of the year, global financial market volatility, weak foreign economies, low alternative investment yields and a variety of factors creating uncertainty have reinforced the advantages of direct investment in U.S. commercial real estate, reports Marcus & Millichap.
Canada is perennially the largest foreign buyer of U.S. properties and heads the list in first half 2016, followed by China. China’s growing purchasing power enabled it to execut