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【World Property Journal】COVID Continues to Impact Commercial Property Investment, Globally

【World Property Journal】COVID Continues to Impact Commercial Property Investment, Globally


Commercial property consultant CBRE is reporting this week U.S. inbound capital fell 6% from the previous year to $11.6 billion in the first half of 2021 -- the weakest first-half showing since 2013.

In contrast, strong investor appetite for international industrial assets fueled an 11% increase in U.S. outbound capital, which totaled $23.1 billion in H1 2021. CBRE's research further reports the following key trends in 2021:

U.S. Inbound Investment Trends

  • U.S. industrial, which has been the most resilient sector during the pandemic in terms of real estate fundamentals, attracted 21% less foreign capital in H1 2021 than a year ago, given high prices and intense demand from domestic investors. Office had the smallest year-over-year investment decrease (-5%), signaling that the sector may be stabilizing.
  • Investors from Canada, Singapore and China deployed more capital in the U.S. in H1 2021 than in H1 2020. The U.K., which ranked 10th for total inbound capital over the prior five years, was the only other country in the top 10 with higher year-over-year investment, up by 94% in H1.
  • Relative to th past five years' H1 average, inbound capital in H1 2021 increased in just 12 of the top 50 U.S. markets for inbound capital and was down by an average of 61% in each of the top five U.S. markets. Those with the strongest growth from the five-year average were all adjacent to top gateway metros: San Jose and Oakland (San Francisco Bay Area), Northern New Jersey (New York City) and Richmond and Baltimore (Washington, D.C.). This reflects the pandemic-era shift away from dense urban centers and into lower-cost peripheral markets.