International investors bought 25 percent more US commercial real estate during the first four months of 2013 than was acquired in the same period of 2012, and according to CBRE Global Investors, that number is only going to grow.
In a recent interview, CBRE Global Chief Executive Officer Matthew Khourie said that real estate transactions sourced from one region and invested in another will reach as much as $2 billion in 2013. And Khourie expects that many of these deals will involve institutional investors from Asia buying property in the US and Europe.
According to Real Capital Analytics, overseas investors bought $7.97 billion in U.S. commercial real estate from January to June this year.
CBRE Global Investors, which manages more than $90 billion of property assets, believes that many Asian investors are after assets with lower risks and moderate yields. The most vivid recent example of this trend was the purchase of a 40 percent stake in New York’s General Motors Building last month by the families of Chinese real estate developer Zhang Xin and Brazilian banking billionaire Moise Safra.
During the interview, Khourie also explained that CBRE Global Investors expects that the firm’s greatest growth over the next five to 10 years will come from Asia.
In China, CBRE Global is looking for projects in Beijing, Shanghai, Guangzhou and in as many as 10 second-tier cities, including Chengdu, Wuhan and Suzhou, the fund’s Greater China Country Manager Richard van den Berg said at a conference in Hong Kong during June.