LOS ANGELES—Asian investment in the office market more than quadrupled in the US last year with the majority of the funds concentrated in New York and Los Angeles, according to Commercial Cafe. In 2016, Los Angeles had $1.7 billion of office investment from Asian investors, in a total of eight deals. Comparatively, Los Angeles had no office investment activity from Asia in 2015 or 2014.
“Chinese investing has grown in the US for years due in large part to the amount of wealth within China looking to minimize risk from the instability of the Renminbi and political regulation,” Doug Ressler, senior research officer at Yardi Matrix, tells GlobeSt.com. “The appreciation potential and confidence in the US fixed asset markets, and SOE's are helping large investors do this. The advent of Fintech services is making things easier, and real estate is a good place to go since US real estate is one of the most stable real estate markets in the world, and contributes an ease of investment.”
The office investment activity in Los Angeles last year was the strongest in the last decade, and the activity from Asian investors helped move the bar. Both domestic and foreign investors see strong upside potential in office assets. “With fewer people are purchasing residences and choosing to rent, the value of office assets is on the rise. Plus rising interest rates and increased FDI are projected,” adds Ressler. “It should also be noted that condo and residential investment has typically been by individuals, whereas commercial investment has typically been on a more institutional level.”
Activity in New York was even stronger. The city saw $7.4 billion in Asian office investment last year. As a result of this activity, competition for office assets is increasing. “This appreciation potential has increased the competition for higher-end assets, which has no doubt contributed to the increase in prices, and these firms have deep pockets,” says Ressler.
LOS ANGELES—Asian investment in the office market more than quadrupled in the US last year with the majority of the funds concentrated in
“Chinese investing has grown in the US for years due in large part to the amount of wealth within China looking to minimize risk from the instability of the Renminbi and political regulation,” Doug Ressler, senior research officer at Yardi Matrix, tells GlobeSt.com. “The appreciation potential and confidence in the US fixed asset markets, and SOE's are helping large investors do this. The advent of Fintech services is making things easier, and real estate is a good place to go since US real estate is one of the most stable real estate markets in the world, and contributes an ease of investment.”
The office investment activity in Los Angeles last year was the strongest in the last decade, and the activity from Asian investors helped move the bar. Both domestic and foreign investors see strong upside potential in office assets. “With fewer people are purchasing residences and choosing to rent, the value of office assets is on the rise. Plus rising interest rates and increased FDI are projected,” adds Ressler. “It should also be noted that condo and residential investment has typically been by individuals, whereas commercial investment has typically been on a more institutional level.”
Activity in
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