RCA Insights

Cross-Border Acquisitions in the US Drop in 2017, Canada #1 Investor

By on February 28th, 2018

Cross-border acquisitions of U.S. commercial property dropped by almost one-quarter in 2017, outpacing the decline in activity by domestic capital sources, the latest US Cross-Border Investment Compendium shows.

Deals by domestic investors were down only 3% year-over-year in 2017 versus a 23% year-over-year decline for cross-border investors. Despite the pullback in cross-border deal activity, these investors still represented 11% of all direct acquisitions in the U.S. for 2017. This level can be viewed as a return to normality; over the long term cross-border investment has represented 10% of the market.

With the news swirling around the restrictions on Chinese capital outflows, the instinct is to write off all the cross-border slowdown as a function of Chinese investors, but this group was still the #3 source of cross-border investment activity in 2017. Canadian investors have returned to their natural position as the leading cross-border investor group in the U.S. and Singaporean investors were the second largest.

1802 Cross Border Comp main

If you are a current RCA subscriber log into your account to download the US Cross-Border Investment Compendium for 2017 from the RCA website. To get more information about becoming a client, contact us

Jim Costello

Jim Costello

Senior Vice President
jcostello@rcanalytics.com

Jim Costello has worked in the CRE space on issues of urban economics since 1990, including a 20-year stint at Torto Wheaton Research. Jim expanded the reach of the Torto Wheaton Research team developing forecasts of global market fundamentals. He also developed approaches to pair the forecast results with frameworks to answer investor questions on asset values and relative investment opportunities.

In the aftermath of the Global Financial Crisis, Jim provided advice to the Treasury Department and helped educate these professionals on commercial real estate performance. Jim is a member of the Commercial Board of Governors of the Mortgage Bankers Administration, where he helps policy makers understand the commercial real estate industry.

Jim is expanding the capabilities of the Real Capital Analytics team on issues of real estate market dynamics. Jim has a master’s degree in economics and is a member of the Counselors of Real Estate.