By Jim Costello on November 29th, 2017
Canadian and Singaporean investors have upped the pace of their commercial real estate acquisitions in the U.S. while activity from Chinese investors has waned, the latest US Cross-Border Investment Compendium shows. Deal volume by Singaporean buyers increased more than 200% in the first nine months of 2017 compared with a year earlier, pushing them into the #2 position behind activity by Canadian investors.
In the face of new capital regulations at home, U.S. transactions by Chinese investors dipped 55% in the year to date compared with a year earlier, nudging them to the #3 spot. In 2016 Chinese players were the largest investor group in the U.S.
Overall, cross-border capital fell to an 11% share of total U.S. market activity in the third quarter. The declining share of cross-border investors was steeper in the 6 Major Metros (6MM) of the U.S. than in the secondary and tertiary markets. In the 6MM the proportion of deals by cross-border players slipped to 15% in the third quarter of 2017 from a peak of 23% a year earlier.
In one surprising new trend, overseas players increased their activity in the suburban office market. While CBD office investment volume dropped, deal activity in suburban offices rose 4% in the 12 months through the third quarter.
If you are a current RCA subscriber log into your account to download the US Cross-Border Investment Compendium for Q3’17 from the RCA website.