According to new research by global property consultant CBRE, more commercial real estate investment capital crossed U.S. borders in both directions during H1 2018, with foreign inflow up by 29% from the first half of 2017, and U.S. outflow up by 15% in H1 of 2018.
On net, the U.S. commercial real estate market had a capital surplus of roughly $12 billion. Savvy foreign investors have several strategies to mitigate foreign exchange risk when acquiring U.S. assets, one of which is purchasing forward contracts to hedge against U.S. dollar depreciation.
French company Unibail-Rodamco's acquisition of Westfield, which included a $7.7 billion shopping mall portfolio, elevated inbound capital flows from REITs and France, as well as foreign retail acquisitions, to record highs.
CBRE further reports the cost of hedging against U.S. dollar depreciation is rising worldwide, reducing effective yields for many foreign investors, despite the continuing attractiveness of the U.S. market in growth and liquidity terms. Inbound capital flows have eased in the past 24 months, providing more opportunities for domestic investors.
Swimming pools are worth more in Los Angeles than they are in any other major U.S. metro area, followed by Austin and Orange County, California, where a pool adds more than $50,000 to a typical home's value.
Zillow is reporting this week that a limited U.S. housing inventory and rapid price appreciation have kept sellers firmly in the driver's seat for several years as the United States recovered from the housing market collapse in 2008.
According to Redfin, the average sale price for U.S. luxury homes nationwide rose 4.7 percent annually to an average of $1,772,000 in the fourth quarter of 2018. That's on par with the annual growth seen in the second quarter of last year and up from a 3.2 percent growth rate in the third quarter.
Global real estate consultant CBRE is reporting this week that retail real estate left behind by the retail industry's digital evolution can find new life as warehouses and e-commerce distribution centers.
According to CBRE, the availability rate for U.S. industrial real estate declined by 8 basis points (bps) in the fourth quarter of 2018, while demand for warehouses exceeded the delivery of newly constructed supply by roughly 6 million square feet.
According to Zillow research, the U.S. housing market is more valuable than ever, worth a cumulative $33.3 trillion in 2018. Since the market hit its lowest point in 2012, it has gained $10.9 trillion in value, and is now worth $4 trillion more than it was at the peak of the housing bubble.
Join 34,000+ real estate professionals worldwide who receive our free weekly newsletter