By Jim Costello on May 20th, 2021
In the past, Manhattan would have been the leading U.S. market for cross-border investment, not so today. Manhattan has slipped to the #2 position in the 12 months through Q1 2021, the latest edition of the US Cross-Border investment Compendium shows, with Seattle claiming the #1 spot.
Only once before has Manhattan not been the leading market for cross-border direct acquisitions of commercial real estate. That time was during the depths of the Global Financial Crisis when deal activity fell so sharply everywhere that cross-border deal volume was measured in the tens or hundreds of millions across markets rather than in the several billions.
This time around, some markets continued to see growth in cross-border investment activity during the Covid period. Cross-border investment activity fell in Seattle over the 12 months through Q1 2021, but less so than in Manhattan.
Manhattan has slipped so much in part due to the uncertainty over the office market. In years past, the large, core assets on offer in the Manhattan office market fit well with the investment objectives of many cross-border investors. Logistics assets are increasingly playing that role for cross-border investors.
Data analysis by Michael Savino
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