In 2014, Canada was the top global investor in commercial real estate in the United States.
According to CBRE, Canada is the most active global investor in U.S. real estate, with approximately $10 billion in direct investments in 2014, far outpacing Norway, China, Japan, and Germany. buying property in qatar
In 2014, global direct investment in US
real estate totaled $41 billion, accounting for roughly 11% of overall
investment in US property assets. When compared to 2013, this indicates a 6%
rise in worldwide investment.
Last year, Canada was the leading global
buyer of U.S. real estate, accounting for 26% of all direct foreign investment,
or $9.7 billion. As of mid-January 2015, Canadian investors have already
transacted $2.75 billion in US real estate. After U.S.-to-U.K. and Hong
Kong-to-China capital flows, Canadian real estate investment in the United
States was one of the world's greatest cross-border capital flows in 2014.
Norway was the second-largest foreign
investor in U.S. real estate in 2014, with $14.4 billion in direct foreign
investment, a 120 percent increase year over year. China and Japan invested a
total of $3.8 billion (+6%) and $3.5 billion (+397%) in the United States,
respectively, accounting for 9% of the total worldwide investment. German
purchasers spent $2.9 billion (+5%) on real estate in the United States,
accounting for 7% of the total.
"While we've seen rapidly rising
Chinese global investment and oil-rich countries in the Middle East and Norway
increasing their allocations to global real estate," said Chris Ludeman,
Global President, CBRE Capital Markets. "Canadian buyers continue to
dominate foreign investment in the United States and should remain on the radar
screens of American investors and owners of U.S. real estate."
"Finding excellent opportunities with
affordable price that can provide a favorable risk-adjusted return is a
difficulty that Canadians, other global investors, and Americans all face.
Nonetheless, we anticipate a brisk investment climate in 2015, with U.S.
volumes continuing to rise."
By far the most popular destination for
Canadian global wealth is the United States. In 2014, Canada invested $22
billion outside of its borders, with 44 percent going to the United States.
Australia and the United Kingdom received the next highest percentages of 17
percent and 14 percent, respectively. It's worth noting that in 2014, the United
States' market share of Canadian global investment fell below its 2007-14
average of 48 percent.
"For many of the same reasons that
other countries do, Canadian investors find U.S. real estate appealing. The
United States provides chances for wealth development, solid cash flows, and
favorable risk-adjusted returns, among other things "CBRE's Director of
Research for Canada, Ross Moore, stated. "Canadian investment is closely
associated with the strength of the American economy and exchange rates, but
the overarching rationale is that Canadian institutional investors need to look
beyond their borders to discover product and diversify their portfolios."
Canadian money is more widely distributed
across the United States than other global capital. Given the size of Canadian
investment, its high level of knowledge with U.S. markets beyond the gateway
cities, and the comparatively low cost and time commitment required for
Canadian investment professionals to go to U.S. markets, this should come as no
surprise.
New York is the largest destination for
Canadian real estate capital across all property categories, as well as total
global capital flows into the United States, followed by Boston and Broward
County, Florida, which made the list due to a significant hotel acquisition.
Seattle is out of the ordinary for a global capital, but it isn't out of the
ordinary for a Canadian capital, considering its proximity to the country and,
in particular, Vancouver.
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