Foreign Investors Seek Safe Haven for Capital in U.S. Industrial Assets
Patricia Kirk | Nov 09, 2018
Inflow of foreign capital to U.S. commercial real estate in the first half of 2018 increased 29 percent over the previous year, reports real estate services firm CBRE. But some foreign investors are diversifying away from office assets and gateway markets, according to Mike Kendall, executive managing director of investment services with Colliers International.
“Foreign investors formerly focused on trophy office assets and multifamily, but in recent years have been acquiring industrial portfolios,” he says. “Their interest in industrial started with actively buying up Amazon facilities of up to a million square feet. This is happening for two reasons: it’s an efficient way to get larger amounts of capital out placed, and Amazon has a certain amount of cache and name recognition,” Kendall adds.
Real estate services firm Avison Young reports that foreign capital investment in U.S. industrial real estate through May 2018 topped $6.6 billion, compared to $5.8 billion for all of 2017 and $3.7 billion for 2016.
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