Asian investors dominate us commercial property

Photo: Michael Tapp

International investment in commercial real estate is dominated by Asian interests in both Canada and the US, according to a new survey from the Richard J. Rosenthal Center for Real Estate Studies at Realtor University and the National Association of Realtors.

The survey found that 47 per cent of Canadian respondents and 41 per cent of those in the US indicated that their international clients were from Asian countries.

"Commercial real estate has become a global industry, and Realtors from across the U.S. and Canada now regularly serve clients from all over the world," said NAR President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Ark.

"This survey proves the fact that while all real estate is local, not all investors are local."

According to the survey, 45 per cent of Realtors who practice commercial real estate in Canada noted an increase in international clients. Similarly in the US, more than a third of responders, 36 per cent, observed an increase in international investment.

International investors brought significant capital into North America, nearly $13 billion in the latter half of 2014. Investors from Asia invested $5.7 billion in real estate, $4.8 billion came from Europe, $1 billion came from Oceania and $390 million came from Latin American investors.