Tuesday, November 24, 2020

Tag: What’ll Happen to US Commercial Real Estate as Chinese Money Dries Up?

What’ll Happen to US Commercial Real Estate as Chinese Money Dries Up?

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by Wolf Richter, Wolf Street:
See Manhattan.

In the second quarter in Manhattan, Chinese entities accounted for half of the commercial real estate purchases with prices over $10 million. By comparison, in 2011 through 2014, total cross-border purchases from all over the world (not just from China) were in the mid-20{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} range.

“At a time when domestic investors have pulled back, foreign parties have ramped up their holdings in Manhattan,” according to Avison Young’s Second Quarter Manhattan Market Report.

This includes the $2.2 billion purchase in May of 245 Park Avenue by the Chinese conglomerate HNA Group, the sixth largest transaction ever in Manhattan. And at $1,282 per square foot, it was “among the highest price per pound for this type of asset.”