Chinese investors looking beyond gateways.

PositionCommercial

Chinese investors show strong interest in U.S. commercial real estate, reported KPMG LLP, New York. The consulting firm estimated that Chinese investment in U.S. commercial real estate exceeded $4 billion last year.

"The U.S. market is very attractive to Chinese investors as they look to expand their global operations, diversify their portfolios by adding U.S. assets and establish information exchanges with U.S. developers," said Phil Marra, KPMG U.S. real estate funds leader. "While much of the investment has been focused in U.S. coastal gateway cities, where assets are considered most liquid, Chinese investors are starting to expand into other markets as they seek higher yields and diversification."

KPMG's report, China Inbound Investing in U.S. Real Estate, examined market dynamics in the United States' six most active real estate markets--New York, Los Angeles, San Francisco, Washington, D.C., Chicago and Dallas. It predicted that the overall U.S. real estate market should see "record-setting" growth in the next two years due to a solid domestic economy, low interest rates worldwide and increasing demand from both U.S. and global investors seeking yield.

CBRE Group, Los Angeles, noted that the combination of a favorable exchange rate and economic growth has made the United States a leading target for Middle East-based investors as well. Mid-East investors purchased nearly $10 billion in U.S. CRE in 2015--a significant increase, CBRE said.

"The...

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