Countries are returning to business as usual following the restrictions of the pandemic and see the U.S. as an attractive location for commercial real estate investment.
While global uncertainties exist such as inflation, geopolitical conflict and supply chain disruptions, foreign investors regard the U.S. as a “safe haven” for their capital.
Favorite investment possibilities
Many would-be home buyers are renters since current home prices and mortgage rates are high and unaffordable for some. As a result, the U.S. apartment market remains attractive to foreign investors. There is also a demand for industrial real estate, including warehouses and distribution centers.
Commercial real estate in the U.S. affords the opportunity for higher returns and a more consistent cash flow than European or Asian properties. There is also less exposure to geographic conflicts and greater stability for investment opportunities.
Rule of law
The 2022 Global Real Estate Transparency Index from investment management company JLL ranks the United States as the second most transparent real estate market out of their survey of 99 countries and territories. Foreign investors require clear information and disclosures. Because of its strong rule of law, the U.S. offers legal protections that investors might not find in other countries. Here there are no hidden agendas or unethical practices with commercial real estate transactions.
Foreign investors interested in commercial real estate in the U.S. must navigate various areas of concern such as public safety or eminent domain issues and even possible national defense restrictions. They must also comply with a confusing array of U.S. taxes including property taxes, capital gains and state and federal income taxes. However, foreign investors can rely on knowledgeable attorneys and other professionals who can manage the details relating to various types of income properties.