U.S. Hot Spots: Foreign Capital Looking to Seattle
By Harmel Rayat - There’s renewed talk that commercial real estate growth will slow… It’s an argument I’ve had with people for years.
But there’s no real basis for the argument especially when it comes to foreign interest in U.S. property. The U.S. commercial market happens to be one of the most stable investments for foreign money, making it an easy investment choice. In fact, its just part of the reason foreigners spent $87.4 billion throughout 2015.
That’s a big jump from the $5 billion spent by foreigners in 2009.
China alone spent $8.5 billion on U.S. commercial real estate in 2015.
Better still according to the Association of Foreign Investors in Real Estate (AFIRE), the flood of foreign cash just in New York real estate is likely to continue. More than 64% of the group’s members – who hold $2 trillion in global real estate – have said they will increase their investments in the U.S.
Seattle – for example – seems to be the new hot spot.
While New York, Los Angeles, San Francisco, and Washington, D.C. are likely to be some of the other hot spots, survey participants from AFIRE are watching Seattle with great interest, as well.
In fact, we’ve already watched as Hong Kong’s Gaw Capital Partners bought the Columbia Center for $711 million. The group bought the 27-story Seattle Tower, too, for $49.5 million. The original seller bought the property in 2011 for $30.45 million…
Investors bough the Dexter Horton Building in Seattle for $124 .4 million, nearly $50 million more than what the seller paid for it two years ago, proving once again that timing is an important tool…
These are still incredible, profitable times for commercial real estate growth. We cannot discount that…