February 14, 2020 Comments Off on Inbound Investment in U.S. CRE Drops 54% Year-Over-Year Views: 1303 National News, Top National

Outflows from U.S. real estate investors in 2019 exceeded inbound investment into U.S. commercial properties for the first time since 2014, CBRE reported. This wasn’t due to a significant increase in U.S. investor activity overseas, but rather to a 54% year-over-year drop in foreign investment into the U.S.

That 54% drop itself requires some additional explaining. CBRE noted that the Y-O-Y decline in 2019 was due to “a sharp decrease in entity-level sales that tend to be highly volatile from year to year.”

In 2018, rising U.S. interest rates and discounted REIT share prices contributed to entity-level sales’ “unprecedented” 51% share of total inbound volume, said CBRE. “But as these trends reversed in 2019, this share dropped to just 6%. Excluding entity-level transactions, 2019 inbound investment decreased by a more moderate 12.1%.”

The largest pullback was in Chinese capital, which totaled just $468 million in 2019 after averaging $5 billion annually since 2013.

Read more at CBRE

Connect With CBRE Capital Markets

Get CRE News in 150 words

For comments, questions or concerns, please contact Paul Bubny

Tags: Acquisition, Research

united-states top-na

Inbound Investment in U.S. CRE Drops 54% Year-Over-Year

Paul Bubny