By Jim Costello on December 5th, 2019
Purchases of U.S. commercial real estate by cross-border investors slipped in the third quarter of 2019, the latest edition of the US Cross-Border Investment Compendium shows. The decline was seen both in the volume of deals completed and the cross-border share of the U.S. market, as activity returned to more typical levels.
For the first nine months of the year, dispositions of real estate exceeded purchases by $18 billion. The large net negative investment was driven by the sale of interests in GLP by Chinese investors in the third quarter of the year.
Chinese investors had represented an outsized presence in the U.S. commercial real estate market from 2014 to 2017, with high profile acquisitions in gateway markets. For the 12 months through the third quarter of 2019, even capital from Bahrain exceeded Chinese investment in the U.S.
The rapid pace of purchases by Chinese investors had helped push cross-border acquisitions up to 18% of total direct acquisitions in the U.S. in late 2015. Cross-border activity pulled back to only 10% of total investment in the 12 months through the third quarter of this year.
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