RCA Insights

Pace of Cross-Border Investment Into US Slackens

By on May 28th, 2020

The pace of cross-border capital flowing into the U.S. commercial real estate market fell in the first quarter of 2020 compared with the year prior, the latest edition of the US Cross-Border Investment Compendium shows. The slowing marks the continuation of a trend seen before the global health crisis erupted.

In the 12 months through the first quarter only $52 billion came to the U.S. from other countries versus $88 billion for the year through Q1 2019. The current pace is down by one-half relative to the highs seen in 2015.

The shrinking of cross-border capital can be tied to a pullback by regional sources. Flows from China have been constrained by capital controls and Canadian investors, who had picked up the pace as Chinese players fell back, have reined in their spending in part due to pricing concerns.

Going forward, cross-border investment in the U.S. is almost certain to fall, along with domestic activity, as investors grapple with the global health and economic crises.

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Data analysis by Mike Savino

If you are a current RCA client, log into the RCA website to download the US Cross-Border Investment Compendium PDF report and data file for Q1 2020. Not yet an RCA client? Contact us.

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