Why Is the U.S. a Top Destination for Foreign CRE Investors?
Upswing in Foreign Investment Into U.S. CRE
Foreign investment totaled $72B in last 12 months, double the amount at the height of the pandemic
On average, makes up 10% of total investment in U.S. CRE
Canada led foreign investment, followed by Singapore, China, Germany and South Korea
Economic Outlook Supports Long-Term Investments
Low unemployment, job creation and robust consumer spending suggest strong economic growth
While labor shortages and inflation remain headwinds, underlying demand drivers will sustain CRE performance
U.S. Offers Market Stability and Higher Yields
Average U.S. CRE cap rate is about 5.9%, higher than 5.5% in the U.K., 5.3% in Canada and 4.7% in Germany
Investors willing to outbid local investors to place capital in specific secure assets and markets
Global economic shifts may bring more foreign investors to U.S. – Creates new opportunities for the right sellers
*Trailing 12 months through 1Q
Includes apartment, retail, office, industrial, and hotel sales $2.5 million and greater
Sources: Marcus & Millichap Research Services, Real Capital Analytics
