Foreign Money Pouring into Real Estate


This shouldn’t come as a surprise. I’ve long talked about the foreign attraction to U.S. commercial real estate.

After watching China inject record levels of cash into New York City in 2014, another $50 billion could be poured into the region from China, notes Cushman & Wakefield’s Chairman of New York Investment Sales, as quoted by The Street.

And there’s still plenty of room for upside.

With the value being offered, China’s investors are just beginning to invest in U.S. commercial real estate, as China slows and investment regulations change, as I’ve noted.

Over the last two years, I’ve watched Fosun International buy the 60-story One Chase Manhattan for $725 million. Beijing real estate mogul Zhang Xin took part in the $1.4 billion purchase of the General Motors office tower, for example.

Nowadays, according to Bloomberg, “Blockbuster real estate deals are back and breaking records as cash from around the globe pours into U.S. office buildings, apartment complexes, and other investment properties.”

About $24 billion in foreign capital flowed into U.S. properties in Q1 2015 alone, according to the report, thanks in part to efforts of the Federal Reserve. That’s more than half the total for all of 2014.

That number is only poised to explode even more moving forward. The opportunities in the space are endless. But that shouldn’t come as a surprise. We’ve long talked about that.