Canada Leads in a Down Year for Cross-Border Investment in U.S. CRE
Even in a pandemic year, some things remain consistent, and Canadian buyers once again led the way for cross-border investment into U.S. commercial real estate, according to the latest edition of Real Capital Analytics’ US Cross-Border Investment Compendium. America’s northern neighbors poured $12.4 billion into U.S. properties, a 10% year-over-year decline.
Total cross-border investment into U.S. commercial property declined 31% Y-O-Y in 2020, in line with the overall U.S. market decline. For the fourth quarter, cross-border flows matched year-ago levels, while investment by domestic U.S. players dropped.
Some stalwarts of cross-border investing pulled back sharply in 2020, with German investment down nearly one-third and Japanese buyers spending 53% less.
Conversely, groups from other countries spent more in 2020 than in 2019, led by South Korea with an 88% Y-O-Y gain to $5.2 billion. South Korean investors put 56% of their U.S.-bound capital to work in the industrial market, says RCA.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).