RCA Insights

Cross-Border Buyers Sit Tight in US During Q1

By on May 29th, 2019

Cross-border investors reined in their spending in the U.S. in the first quarter of 2019, the latest edition of the US Cross-Border Investment Compendium shows. Direct acquisitions by cross-border investors dropped by about half compared with a year ago as significant portfolio and entity-level deals, which had characterized much of the cross-border activity during 2018, were largely absent.

Deal activity by Canadian investors dropped by 53% year-over-year in the first quarter. A year ago Brookfield had bought a hotel portfolio and the CPP Investment Board was involved in the purchase of a large apartment portfolio. Activity from Asian investors posted the largest drop; a year prior the buyout of GLP by a consortium of Chinese investors had closed.

On a positive note, deal activity from the Middle East swung higher.  There was $1.8 billion in direct acquisitions from these investors in the first quarter of 2019, compared with less than $1 billion a year ago.

1905 Compendium MAIN_300-01

If you are a current Real Capital Analytics subscriber log into the RCA website to download the latest US Cross-Border Investment Compendium PDF and data file for Q1 2019. To learn more information about the advantages of being an RCA client, contact us.

Also on RCA Insights:

Hey Big Spender: A Look at Canada’s Cross-Border Flows

Chart: Waning Flows From China and Hong Kong

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.