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U.S. Foreign Investments Beat Pre-Pandemic Levels

True Funds Analytics: Foreign investors have shifted concentration a bit from key metropolitan areas, but the $70.8B invested in 2021 is the greatest complete given that 2018’s $94.6B.

NEW YORK – As COVID-19 journey limits started to carry final year, overseas investors flocked again to U.S. industrial real estate. Foreign investments exceeded pre-pandemic amounts in 2021, according to a new report from Real Money Analytics.

International buyers bought $70.8 billion of U.S. commercial real estate in 2021 – surpassing 2019 and the maximum complete considering that 2018’s $94.6 billion.

The nations around the world most represented in intercontinental U.S. industrial investments in 2021 were being Canada, Singapore, South Korea and the United Kingdom, in accordance to the report.

However, 2021 investors did change their aim absent from traditional investments like place of work structures and resorts in main metropolitan areas such as New York, San Francisco and Chicago. In its place, they ended up drawn to increasing sectors like warehouses, rental residences and specialised business buildings for pharmaceutical businesses, The Wall Road Journal stories.

Investors also adjusted their target markets, homing in on the Sunbelt and scaled-down markets more than coastal metropolitan areas very last 12 months.

“It is a various planet,” says Riaz Cassum, world wide head of intercontinental cash protection for JLL, a business assets firm. “You’re starting up to see big institutional buyers looking at Dallas, Charlotte, Denver, Nashville, Austin and other higher-development, reduced-tax marketplaces.”

Supply: “Foreign Financial investment in U.S. Professional Property Exceeds Pre-Pandemic,” The Wall Road Journal (Feb. 8, 2022) [Log-in required.]

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