{"id":1004356079,"date":"2019-09-27T06:22:55","date_gmt":"2019-09-27T14:22:55","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004356079"},"modified":"2019-09-27T07:58:23","modified_gmt":"2019-09-27T15:58:23","slug":"why-foreign-investment-in-the-us-looks-different","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/why-foreign-investment-in-the-us-looks-different\/","title":{"rendered":"Why Foreign Investment in the US Looks Different"},"content":{"rendered":"
\"\"<\/a>

L to R: Jim Costello, Maggie Coleman and Colleen Pentland Lally. Photo by Holly Dutton<\/em><\/p><\/div>\n

Three years ago, Chinese investment in U.S. real estate hit a peak of $46.5 billion. The country\u2019s biggest players\u2014Anbang<\/a> and Wanda Group\u2014plunked down billions of dollars for high-profile properties in core markets of the country, including New York City. But now, with an investing atmosphere shaken by trade wars, uncertainty surrounding the stability of the U.S. government and the ever-looming threat of a recession<\/a>, what foreign investment looks like in the U.S. has experienced a significant shift. <\/p>\n

\u201cIt\u2019s changing, but it\u2019s not the end of the world<\/em>,\u201d said Jim Costello, Senior Vice President at Real Capital Analytics, at a panel on foreign investment at the 2019 CREW Network Convention in Orlando, Fla., on Sept. 26. Costello noted that for the first time in seven years, cross-border investors are selling more than they are buying.<\/p>\n

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READ ALSO: <\/strong>Capital, Interest Rates Battle as Properties Obsolesce Faster<\/a><\/p>\n

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\u201cDon\u2019t panic,\u201d <\/em>said Costello. \u201cThere are a lot of negative things in the news these days, but if you look at some of the fundamentals in the U.S. economy, there\u2019s still a lot of good reasons to be in U.S. real estate.\u201d<\/em><\/p>\n

While Chinese investment has pulled back dramatically, other countries have filled in the gap. Canada is the top foreign investor of American real estate, with 54.2 percent of cross-border investment, followed by Germany with 7.7 percent, according to data from Real Capital Analytics. <\/p>\n

\"\"<\/a>

Data from Real Capital Analytics. Photo by Holly Dutton<\/em><\/p><\/div>\n

Looking at new markets<\/strong><\/h2>\n

Foreign investors aren\u2019t just looking to acquire office properties\u2014retail, industrial and senior housing and care assets are attracting more capital. The interest in new sectors can be attributed at least in part to wariness in investing in primary markets and sectors due to cap rate compression.<\/p>\n

\u201cWe\u2019ve talked to a lot of groups about importance of Seattle and Chicago,\u201d<\/em> said Maggie Coleman, a managing director in international capital at JLL. \u201cIn some ways those are acting more like primary markets. We\u2019re working on education around secondary market exposure.\u201d<\/em><\/p>\n

In the multifamily sector, Canada has emerged as one of the biggest investors in the U.S., picking up large portfolios in the southeast and southwest regions, where the development of workforce housing has flourished.<\/p>\n

\u201cThey saw workforce housing before it became the darling of multifamily,\u201d<\/em> said Coleman. \u201cThey <\/em>really identified that this is where middle America rents and works and this part of America is not going anywhere.\u201d <\/em><\/p>\n

What lies ahead<\/strong><\/h2>\n

Despite the higher cost to investors, medical office and senior housing properties are getting more attention, as the demographic wave of aging Baby Boomers is leading to an uptick in demand for these kinds of properties.  <\/p>\n

Investor concerns over regulatory issues such as rent control could indirectly give secondary markets a boost, as most of the regulations that have been implemented have been affecting coastal cities.<\/p>\n

\u201cThey\u2019re pausing when they look at states and cities where they implemented or are having some kind of regulatory conversation and may implement in future,\u201d<\/em> said Coleman.<\/p>\n

Analysts are also anticipating a big influx of investor money coming in from Japan, where $8 trillion in pent-up capital is yet to be deployed, with a large amount needing to go into real estate.<\/p>\n

\u201cWe\u2019ve been courting Japanese investors for a while,\u201d<\/em> said Coleman. \u201cBut then we saw an influx from Singapore. We saw their REITs and pension come out with capital in a very meaningful way. That has really supplemented the Japanese capital, which we\u2019re still waiting for.\u201d  <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The country still attracts billions in cross-border capital but the players and strategies have changed, a panel at the 2019 CREW Network Convention reveals. <\/p>\n","protected":false},"author":745,"featured_media":1004356082,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,16,21783,23891,21742,1493],"tags":[33188,35044,44006,47195,34006],"class_list":["post-1004356079","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-international","category-investment","category-national","category-latest","category-orlando","tag-crew-network","tag-jim-costello","tag-jll-capital-markets","tag-maggie-coleman","tag-real-capital-analytics"],"acf":[],"yoast_head":"\nWhy Foreign Investment in the US Looks Different - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/why-foreign-investment-in-the-us-looks-different\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Foreign Investment in the US Looks Different\" \/>\n<meta property=\"og:description\" content=\"The country still attracts billions in cross-border capital but the players and strategies have changed, a panel at the 2019 CREW Network Convention reveals.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/why-foreign-investment-in-the-us-looks-different\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2019-09-27T14:22:55+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-09-27T15:58:23+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/09\/Global-Markets-Panel-Photo-e1569589382148.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"599\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Holly Dutton\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/why-foreign-investment-in-the-us-looks-different\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/why-foreign-investment-in-the-us-looks-different\/\",\"name\":\"Why Foreign Investment in the US Looks Different - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/why-foreign-investment-in-the-us-looks-different\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/why-foreign-investment-in-the-us-looks-different\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/09\/Global-Markets-Panel-Photo-e1569589382148.jpg\",\"datePublished\":\"2019-09-27T14:22:55+00:00\",\"dateModified\":\"2019-09-27T15:58:23+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/9259ffaba4775229ae3556b9555e566d\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/why-foreign-investment-in-the-us-looks-different\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/why-foreign-investment-in-the-us-looks-different\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/why-foreign-investment-in-the-us-looks-different\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/09\/Global-Markets-Panel-Photo-e1569589382148.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/09\/Global-Markets-Panel-Photo-e1569589382148.jpg\",\"width\":800,\"height\":599,\"caption\":\"L to R: Jim Costello, Maggie Coleman and Colleen Pentland Lally. 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