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Foreign investors buying properties as dollar appreciates

On Behalf of | Dec 30, 2016 | Uncategorized

Commercial real estate investors in Kansas may be aware that the U.S. dollar has been on the rise. It has reached its highest value compared to the Chinese yuan in nearly nine years. This is inspiring greater interest in U.S. commercial real estate markets from Chinese investors.

Analysts say that another reason Chinese investors are more interested in U.S. commercial real estate right now is because these investors have high expectations about the President-elect’s pro-growth policies. Chinese investors are concerned about capital leaving China, so they are looking for more dollar-denominated assets. Growth in the Chinese economy is also slowing down, and Chinese investors are trying to move capital into U.S. assets before the dollar appreciates even more than it already has.

Foreign investors that are buying U.S. commercial real estate are most interested in properties in Manhattan, Los Angeles, San Francisco, Chicago and Washington, D.C. The president of Marcus and Millichap said that the U.S. commercial real estate market is getting the attention of global investors, and there is much less risk in U.S. commercial real estate than there has been in the past.

Investors in the U.S. may be able to sell some of their real estate holdings to foreign investors who want to move money into the U.S. real estate market. However, real estate transactions involving foreign investors could be a little more complicated than selling to local buyers due to language and cultural differences. Accordingly, having legal assistance in these types of commercial property transactions could be advisable.