Missouri residents may have heard about a potential trade war that could bring negative consequences. However, the United States is still a preferred market for many foreign investors. In fact, foreign countries directly invested $450 billion in the United States in 2016, according to the Bureau of Economic Analysis. Typically, foreign investors like to put their money into commercial properties. Since 2010, $365 billion has been invested in this sector, and the money tends to go toward properties located in large cities.
Roughly 20 percent of commercial real estate investments made by foreigners were for properties in Manhattan. This doesn’t mean that there aren’t opportunities in smaller markets. Investors with smaller capital reserves may find that investing in an suburban office building better meets their needs. The reason why foreign investors like the American commercial real estate market is because the United States economy is growing stronger. Furthermore, there is more stability compared to markets in Europe that are still dealing with the fallout from Brexit.
The American market is also known for being liquid, which means that investors can buy and sell with relative ease. However, there is no guarantee that any investment will yield the type of returns an investor is looking for. Foreign and domestic investors are advised to do their diligence prior to making a deal.
When investing in commercial property, it may be a good idea to do so with the help of an attorney. An accountant can also provide insight as to whether a transaction is worth engaging in. Legal counsel could help to resolve zoning or other issues related to commercial property.
