Is the US Still a Safe Haven for Foreign Capital?

The US maybe losing its rank as a safe haven for foreign capital. According to experts at the Los Angeles Headquarters Association’s Capital Idea: Financing Development in L.A., Asian investment in Los Angeles has slowed this year; however, the US is still an attractive place for investment and the slowdown isn’t expected to affect MSA pricing.

“So far in 2017, Asian capital flows into real estate have slowed, especially in development,” Randy Zisler, CEO of Zisler Capital Associates, tells GlobeSt.com in an interview following the panel discussion. “Asian capital flows into L.A. and San Francisco as a share of total MSA commercial transactions volume has increased from 2010-2014 to 2016-2017, but the current percentage is still small—5.7% in L.A. and 7.4% in San Francisco—but is unlikely to affect MSA pricing.

Charlie Rose, senior director of structured investments at Invesco Real Estate, noticed a similar trend in Asian investing, and wondered if the global perception of the US market is shifting. “In the past six months we have seen a few cracks in the global perception of the United States as a safe haven for capital, but on a relative basis US real estate remains an attractive investment for both onshore and offshore investments,” he tells GlobeSt.com.