IREI Europe: Foreign investment in US real estate – Now more than ever

Contributors

Karen Martinus
Senior Associate, Global Research

May 2021

The United States is one of the world’s leading real estate markets for cross-border capital. Past return performance, favourable growth and demographics, a strong legal infrastructure, and a diverse asset base consistently attract foreign investors. Since 2010, foreign investors have invested more than $2.2 trillion in US commercial real estate (CRE).1 The COVID-19 pandemic slowed the acquisition activity of cross-border investors, but not more so than that of domestic investors. The initial fear that foreign investment in US CRE would come to a halt due to restrictions on travel and political uncertainties did not transpire. This article examines recent cross-border investment activity and explores why now, more than ever, represents a good opportunity for foreign investors to invest in US real estate.