Why Is the U.S. a Top Destination for Foreign CRE Investors?

Upswing in Foreign Investment Into U.S. CRE

• Foreign investment totaled $72B in last 12 months, double the amount at the height of the pandemic
• On average, makes up 10% of total investment in U.S. CRE
• Canada led foreign investment, followed by Singapore, China, Germany and South Korea

Economic Outlook Supports Long-Term Investments

• Low unemployment, job creation and robust consumer spending suggest strong economic growth
• While labor shortages and inflation remain headwinds, underlying demand drivers will sustain CRE performance

U.S. Offers Market Stability and Higher Yields

• Average U.S. CRE cap rate is about 5.9%, higher than 5.5% in the U.K., 5.3% in Canada and 4.7% in Germany
• Investors willing to outbid local investors to place capital in specific secure assets and markets
• Global economic shifts may bring more foreign investors to U.S. – Creates new opportunities for the right sellers

*Trailing 12 months through 1Q
Includes apartment, retail, office, industrial, and hotel sales $2.5 million and greater
Sources: Marcus & Millichap Research Services, Real Capital Analytics

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