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Chinese Investors Ride the Brakes Through Chicago
For concrete evidence that Chinese buys of U.S. commercial real estate slipped when China’s State Council restricted outbound investments last August, look no further than Chicago. A Cushman & Wakefield report compares Chinese activity here in 2017 to recent years and sees a marked drop-off.
In 2016, for example, Anbang Insurance spent $952 million locally as part of its $6.5-billion acquisition of Strategic Hotels & Resorts. 2017’s only notable transaction was HNA Group’s $335-million acquisition of 181 West Madison.
“Chicago garnered a lot of attention from Chinese investors in the last three years, with heavy hitters such as Anbang, Cindat, HNA and China Life providing an influx of capital,” said Cushman & Wakefield’s Janice Stanton. “As capital controls kicked in, 2017 Chinese investment fell 63% from 2016’s record $1 billion. However, historically it’s the European and Canadian buyers that dominate the Chicago market and should continue to do so.”
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