In&Out
MAP
Inbound
Outbound
In
Out
top 5 capital flows by country
H1 2019 | U.s. Inbound investment trends
Sovereign wealth funds, insurance companies and pension funds (SWIP) together accounted for 30% of inbound volume in primary markets during H1 2019 compared with just 3% in secondary markets.
Excluding entity-level deals,
REIT/REOC shares actually increased y-o-y for both market tiers.
TOTAL VOLUME
$11.3B
$7.2B
$17.1B
$8.0B
Change in Volume (%), H1 2019 vs. five-year H1 Average
$0.4B
Bahrain
Israel
U.A.E.
Canada
China
Singapore
175%
Investment from the Middle East and some European countries is up significantly relative to averages over the past five years…
But volume from these countries is not enough to offset declines from the current cycle’s largest capital sources.
$0.7B
43%
Switzerland
U.k.
$0.6B
12%
$0.5B
162%
$0.6B
63%
Japan
Germany
$5.9B
-10%
$3.8B
-95%
$3.1B
-86%
$2.1B
-48%
$1.1B
-15%
Inbound Capital Flows by Sector
Multifamily
Industrial
Office
Retail
Highest ever H1 multifamily volume
Foreign investors are venturing into secondary and tertiary locations, though proximity to gateway markets is still preferred. Industrial hubs and demographic-driven multifamily markets are also attractive.
Top 5 Growth Markets
$669M
$646M
$1.9B
$2.1b
$721M
Market
y-o-y
trailing 12 mo. volume*
Inland Empire
East Bay (San Francisco Metro)
Boston
Seattle
Northern New Jersey
266%
164%
160%
146%
90%
$2.1b
$2.0b
$611M
$926M
$692M
trailing 12 mo. volume*
2804%
414%
383%
255%
235%
y-o-y
Helsinki**
Osaka
Barcelona
Berlin
Shanghai
Market
Mirroring cross-border investment trends at home, the share of U.S. outbound investment in foreign multifamily and industrial assets has grown tremendously since the prior cycle. As these sectors expand, the share of total outbound capital devoted to office investment has declined the most.
H1 2019
U.s. outbound investment trends
Top 5 Destinations, Current Cycle (2012-2019)
U.S. investors deployed less capital to all top foreign destinations in H1 2019 than they did in H1 2018, with the exception of the U.K. However, large shifts in outbound volume to these countries have been the norm in the current cycle.
Top 5 Growth Markets
Although U.S. outbound investment to many of the typical top destination countries has slowed, certain markets within those countries continue to register significant volume growth.
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Primary markets
Secondary markets
SWIP
30.4%
SWIP
23.1%
Highest ever H1 industrial share
Tenfold increase
from prior cycle
Note: All figures in U.S. dollars. Transactions include office, retail, industrial, residential/apartment and seniors housing. Development sites are excluded. Source: CBRE Research, Real Capital Analytics, August 2019.Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independtly its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and connot be reproduced without prior written permission of CBRE.
*Inbound cross-border investment for the trailing 12-month period ending in H1 2019. Excluding entity-level volume. Limited to markets where inbound volume >$500M.
†Only entity-level volumes >$1B are highlighted separately. Minimal amounts of entity-level volume (sufficiently small as to not skew trends) are included in totals without highlighting.
Source: CBRE Research, Real Capital Analytics, August 2019.
*Outbound U.S. investment for the trailing 12-month period ending in H1 2019. Limited to markets where U.S. outbound volume >$500M
**Morgan Stanley’s acquisition of Itis Shopping Centre accounted for 74% of total U.S. volume in Helsinki during the trailing 12-month period.
Source: CBRE Research, August 2019.
Inbound Volume by Investor Type and Market Tier
Outbound Capital Flows by Sector
CANADA
EMEA
APAC
Latin America & the Caribbean
