International Investors Passed on New York City in 2017

Foreign investors deeply cut their investment in Manhattan commercial real estate in 2017.

International investors accounted for a little more than a third (35%) of sales in Manhattan in 2017 ($23 billion). That’s down from 2016, when international investors took a bigger piece (41%) of a much bigger pie ($39 billion), according to a new report from Eastern Consolidated.

“The slowdown is a reflection of a turning market, and when a market turns there tends to be a lull in sales activity as buyers and sellers adjust their expectations,” said Peter Hauspurg, CEO of Eastern Consolidated.

Some of the biggest foreign investors in New York City in 2016 cut their volume by more than half in 2017.

– Chinese buyers invested $2.5 billion in Manhattan commercial real estate in 2017, a 62% decline from 2016

– German buyers invested $838.5 million, a 64% decline

– Buyers from Hong Kong invested $547 million, a 55% decline

–  UK buyers invested $188 million, an 87% decline

For comments, questions or concerns, please contact our New York commercial real estate editor Bendix Anderson