Why China Will Keep Throwing Money Into US Commercial Real Estate
Chinese investors have pumped an astonishing $93B into US residential real estate between 2010 and 2015, but only $17.1B into commercial real estate over the same period, but over the next few years we can expect China to start closing that gap.
That’s due to the insane returns commercial real estate acquisitions have experienced—annual growth was 70%, according to a recent study by the Asia Society and Rosen Consulting Group, Commercial Property Executive reports. But the extent of continued Chinese investment in US commercial real estate in the future depends on government policy, both here and in China.
While it’s unlikely new regulations will be thrown up in Washington that discourage Chinese investment, the same cannot be said for Beijing. The Chinese government is already taking steps to stem the tide of capital leaving the country. [CPE]