Top real estate economists expect that commercial property transactions will rise over the next two years to levels not seen since before the recession – exceeding the volumes hit in 2006.
Total transaction volume will reach $430 billion by 2016, according to a new forecast by the Urban Land Institute and Ernst & Young. The just-released report is more optimistic than last fall’s industry outlook.
A good portion of this foreign capital is originating from China.
Greenland, like other Chinese companies, is committing to a growing number of multibillion-dollar developments outside of its home market. Chinese investments in U.S. commercial properties jumped almost 10-fold last year from 2012, with Manhattan the biggest area for purchases, followed by other New York City boroughs and Los Angeles, according to research firm Real Capital Analytics Inc.
In San Francisco, China Vanke Co., the nation’s biggest publicly traded developer, teamed with New York-based Tishman Speyer Properties LP to develop the 655-unit Lumina high-rise towers in the South of Market area. Vanke, with investment partner Aby Rosen, broke ground in February on a luxury midtown Manhattan condominium tower for its first New York City project.
Chinese builders are seeking the stability and predictable population growth offered by major U.S. cities, and are taking advantage of the Chinese government’s loosening of rules on direct investment overseas.
As the money continues to pour in from foreign investors the US Commercial Real Estate market is continuing to grow and strengthen.
pamelarealtor 