Foreign investors sold more U.S. commercial real estate than they bought in the first half of the year, marking the first time since 2012 that they were net sellers.
Total foreign investor acquisitions totaled $21.3 billion, while their sales totaled $21.4 billion during the first six months of 2019, according to the latest edition of the U.S. Cross-Border Investment Compendium, published by Real Capital Analytics.
Foreign acquisition volume declined by 37 percent in the second quarter, compared with the same period a year ago. “The pullback was not a function of capital from one region halting purchases,” noted Jim Costello, senior vice president at Real Capital Analytics. “Buyers from each major region of the world were active. Most, however, simply purchased less than last year.”
“For the 12 months through second quarter 2019, the total cross-border investment level was down from recent highs but still at a healthy level of activity,” added Costello. “The decline in acquisitions is not a sign of a whole class of investors writing off the United States. Rather, the high-ticket price deals that these investors pursue are becoming more challenging to execute.”