China’s Capital Flow Sets Record
The influx of Chinese investment in U.S. commercial real estate continues at record levels, according to Cushman & Wakefield’s inaugural China-US inbound investment report. China’s deal volumes reached $19.2 billion in 2016, a record high, making the country the top U.S. foreign investor.
Cushman & Wakefield’s Marc D. Renard anticipates the iconic Union Bank Plaza and development site in Los Angeles will attract considerable interest from Chinese investors. He said, “U.S. commercial real estate offers current yield, diversification and an intrinsic hedge against inflation. In addition, the historical performance of U.S. commercial real estate has demonstrated superior returns and lower volatility than most other asset classes. As result, we expect to see a continued acceleration of capital from Asia into the U.S.”
Two California markets, the Bay Area and SoCal, are ranked among the top five U.S. markets for cross-border investment activity. The top five U.S. markets account for 76% of total investment.
- New York City 46%,
- San Francisco Bay Area 15%,
- Los Angeles 7%,
- Chicago 5%
- Seattle 2%
For comments, questions or concerns, please contact Dennis Kaiser