Top 9 U.S. Destinations for Foreign Capital in 2014

Eric Hawthorn | Llenrock Blog

It’s time to take another look at foreign investment in commercial real estate, this time focused on cross-border investment in U.S. cities. From Jones Lang LaSalle (NYSE: JLL)’s research team and their International Capital Sources 2014 report (PDF), here are the Top 9 Destinations for Foreign CRE Capital in the U.S.:

9. Inland Empire, CA ($0.94 billion; 17 properties)

8. Washington, DC ($1.15 billion; 15 properties)

7. Seattle, WA ($1.20 billion; 27 properties)

6. Boston, MA ($1.29 billion; 14 properties)

5. Dallas, TX ($1.46 billion; 63 properties)

4. Houston, TX ($1.61 billion; 55 properties)

3. Chicago, IL ($1.87 billion; 35 properties)

2. Los Angeles, CA ($4.43 billion; 41 properties)

1. Manhattan, NY ($9.53 billion; 50 properties)

This ranking is based on data from Jones Lang LaSalle and Real Capital Analytics. The ranking is based on each city’s receipt of foreign capital (such as from Canada, China, Japan, Germany, Australia, and England, to name the top foreign investors) toward individual buildings, portfolios, and parcels of land in the markets in question. Note that this ranking comes from research dating back about a year, so a lot of high-profile, recent investments go unreported (such as the recently announced acquisition by China’s Anbang Insurance of Hilton’s Waldorf-Astoria hotel in New York City, which was named Llenrock Blog’s CRE Deal of the Year, for what it’s worth…). Even though most of 2014 is unaccounted for in this ranking, it’s safe to say that the order of cities, if not their specific capital allotments, probably remains intact to this day. Manhattan, of course, remains a stronghold for foreign investment in office, retail, and hospitality; Boston, Chicago, and D.C. are major destinations for office CRE capital; and California’s famous Inland Empire remains a mecca for CRE activity when it comes to its sought-after industrial/logistics assets.


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