Skip to main content

China Leads World in Buying U.S. Commercial Property

Jun 28, 2018
Commercial and multifamily mortgage debt outstanding swelled by $52.3 billion in the second quarter, according to new data from the Mortgage Bankers Association (MBA)

Chinese buyers dominated the market of global buyers of U.S. commercial real estate market last year, according to data from the National Association of Realtors (NAR).
 
The top countries of origin for buyers of U.S. commercial property in 2017 were China (20 percent), Mexico (11 percent), Canada (eight percent) and the United Kingdom (six percent). On the flip side, foreign-based sellers of U.S. commercial property were primarily from Mexico (20 percent), China (15 percent), and Brazil and Israel (both at 10 percent). Over 60 percent of buyer-side sales were transactions with foreign buyers who primarily resided abroad, while 57 percent of seller-side transactions were properties sold by clients who were temporarily residing in the U.S. on non-immigrant visas.
 
Florida, Texas and California were the top states where foreigners purchased and sold commercial property last year, with the median international buyer-side transaction at $975,000 and a median seller-side transaction was $1 million; the median commercial transaction was $625,000. Seventy percent of transactions closed in all-cash deals, while 25 percent used debt financing from U.S. sources. Most buyers purchased commercial space for either rental property (39 percent) or for business investment purposes (34 percent).
 
“Since 2016, world economies have regained their footing and have pressed toward higher ground,” said NAR Chief Economist Lawrence Yun. “Global economic output increased in 2017, and commercial real estate continues to be a healthy investment for global investors.”

 
About the author
Published
Jun 28, 2018
FHFA Approves Freddie Mac's Second Mortgage Pilot

The GSE's limited program will permit cost-effective cash-out refinances

Jun 24, 2024
Former Rocket Mortgage SVP Turned UWM Broker Partner

Zoom Home Lending, headed by former Rocket Mortgage executives, partner with their old wholesale rival, UWM

Jun 20, 2024
Potential For Declining Rates This Summer, Following CPI Report

Norada Real Estate Investments said "rates likely to decline" after the latest CPI report.

Jun 17, 2024
Looking For Change Under Every Couch?

Don’t overlook the obvious – employees have ideas for cost savings, too

Jun 10, 2024
New American Funding Announces New Cash-Offer Program

Similar to Opendoor and Homeward, NAF Cash Maps offers buyers a bidding war advantage

Jun 05, 2024
CFPB Issues Public Inquiry On Junk Fees Affecting Closing Costs

Agency seeks to understand why closing costs are up, who is benefiting, and how costs can be lowered.

May 30, 2024