- May 1, 2018: Vol. 30, Number 5

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Tightening the spigot of Chinese capital flows

by Jody Barhanovich

Chinese investment in U.S. commercial real estate slowed in 2017, falling 55 percent following the imposition of capital controls, according to Cushman & Wakefield. Cushman & Wakefield estimates Chinese investors deployed $7.3 billion into commercial real estate acquisitions during 2017, a 55 percent decrease from 2016. As a result, China fell behind both Canada and Singapore in the ranking of largest sources of foreign capital in U.S. commercial real estate transactions.

In addition, overall foreign direct investment flows from China into the United States fell 35 percent in 2017 to $29 billion, according to the Rhodium Group.

Investments were concentrated in five U.S. markets: New York City, San Francisco, Los Angeles, Chicago and Seattle, with New York and San Francisco accounting for two-thirds of Chinese investments. Demand for office and industrial properties remained relatively supported in 2017, in contrast to hotel, development sites and multifamily. M

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