When it comes to investing in U.S. real estate, our neighbors to the North are the undisputed champions.
CBRE, Los Angeles, reported Canada is the unrivaled global investor in U.S. real estate with nearly $10 billion of direct investments in 2014--ahead of Norway, China Japan and Germany. CBRE said global direct investment in U.S. real estate totaled $41 billion in 2014, or nearly 11 percent of all investment in U.S. property assets, representing a 6 percent increase in global investment from a year ago.
"While we have seen rapidly rising Chinese global investment and oil-rich countries in the Middle East or Norway increasing their allocations to global real estate, Canadian buyers continue to dominate foreign investment in the U.S. and should remain on the radar screens of American investors and owners of U.S. real estate," said Chris Ludeman, global president of CBRE Capital Markets.
Canada led global buying of U.S. real estate last year with 26 percent of direct foreign investment ($9.7 billion). CBRE said Canadian investors have already transacted a $2.75 billion in U.S. real estate as of mid-January. Canadian real estate investment in the United States represented the third-largest cross-border capital flow worldwide in 2014 after United States-to-United Kingdom and Hong Kong-to-China capital flows.
Norway was the second-largest global investor in U.S. real estate in 2014 with 11 percent of direct foreign investment ($4.4 billion), a 120 percent increase year-over-year. China and Japan reached total investment levels of $3.8 billion (+6 percent) and $3.5 billion (+397 percent), respectively, each representing 9 percent of the global total. German buyers transacted $2.9 billion (+5 percent) in U.S. real estate, representing 7 percent of the global total.
"Canadians, other global investors and Americans share the same challenge--finding attractive opportunities with...