Developers Aren’t Sweating The Drying Up Of Foreign Capital In U.S. Real Estate

Published Monday, September 10, 2018
by Cameron Sperance

Commercial real estate is riding a wave of economic expansion, but, even though a familiar source of capital has receded, U.S. developers aren’t ready to hit the panic button.

Chinese investors, a driver of U.S. trophy asset pricing in recent years, reversed course in Q2 and became a net seller for the first quarter since 2008. The investor bloc sold nearly $1.3B in U.S. assets while only buying $126M during the time frame. Even though the group appears to be retreating, developers say foreign investment still wants to be in the U.S.