Foreign Investment in Industrial Real Estate

Historically, foreign investment into the American commercial real estate markets have been largely geared towards multifamily, office, retail and hotel properties. Likewise, the United States has also experienced interest in the industrial real estate sector from foreign investors. Overseas investors from Canada, China, Germany, and others have experienced higher yields on their returns from investing in US industrial real estate. U.S. cities such as Atlanta, Chicago, Dallas/Fort Worth, Los Angeles and New York were often markets on foreign investment radar.

An assortment of reasons has made U.S. industrial real estate more attractive to foreign investment. The following are a few of those reasons:

Although not 100% perfect, the U.S.  legal system is one of the most stable systems in the world. With numerous checks and balances and more stable laws than most foreign countries, foreign investors embrace the ideal of less corruption in business dealings.

The liquidity and size of the United States’ economy coupled with the close network of commercial real estate professionals, is another influencer in their decision.    As a result, when a foreign investor desires to sell property, they can do so in a matter of months.

As the United States’. industrial sector grows, it is likely that foreign investment will be a significant player in the acquisition and development of industrial real estate in the United States.