According to the National Association of Realtors (NAR), in 2018, nearly 1/5 of US realtors focusing on commercial real estate had a sale with an international client in the previous year. Since then, the US-China trade war has caused US economic growth to follow a slower expansion rate.
The effect of US foreign policy on real estate investment
The Wall Street Journal reported that, in total, foreign investors were ‘net sellers’ of US commercial real estate in 2019. The last time this happened in the US was 2012, which represents the lowest level of foreign investment in five years.
- Large-scale commercial real estate acquisitions by foreign investors reduced to 49.1 billion in 2019.
- This number is half of the acquisition values from 2018. Investors from Canada, Asia and Europe have shown drastic reductions in investment this past year.
- Despite this, 61% of respondents to a National Association of Realtors (NAR) poll expect international client transactions to stay the same or increase between 2019 and 2020.
What are the selling points for US properties to foreign investors?
There are many reasons why the US is a popular place of investment for foreign entities. These include the general stability of the United States’ political and legal system, the size of its economy, a diverse banking system, and the overall transparency of information related to its markets.
Finding appropriate counsel for international real estate transactions
Whether you’re working with foreign investors to sell US properties or showcasing domestic commercial properties to foreign companies, an attorney experienced in international commercial real estate transactions could elucidate many of the complex legal issues related to these transactions.