Asian Buyers Move in on U.S. Commercial Real Estate

Asian investors are eying office and retail properties in North America and have already spent $1.9 billion on U.S. commercial real estate during the first six months of the year, according to data from Real Capital Analytics. That compares to $551.4 million Asian investors spent on U.S. commercial real estate in 2012.

The Wall Street Journal reports that Asian private investors are targeting small office buildings, retail shops, and branded hotels in North America as well as in Europe. "There's great depth and interest in deal sizes between $30 and $80 million,” says Alastair Meadows, head of the international capital group at Jones Lang LaSalle, based in Singapore. “That range falls above domestic private investors but below institutional investors. It's the sweet spot."

Many wealthy Asians investors found real estate success in their home countries are now looking to diversify, seeing if they can duplicate that success abroad. 

“They are attracted to the long, stable rents of more mature Western markets, which often offer better returns than the ultra hot real estate markets of Hong Kong and Singapore, the main destinations for offshore Asian investment,” The Wall Street Journal reports. “An average lease term for an office in Asia is just three years, compared with 15 or 20 years in a market like London or New York. Moreover, rental yields for prime office buildings [calculated by taking the annual rental income divided by the price of the property] are in the 5 percent to 6 percent range in those cities, higher than the 3 percent to 4 percent range in Hong Kong and Singapore.”

Source: “Asian Real-Estate Investors Are Thinking Small,” The Wall Street Journal (July 16, 2013)

About Ady Simion (Realtor and Public Notary)

Ady Simion was named in the Top 1% of all agents for NRT LLC a subsidiary of Realogy that operates a variety of real estate offices under brands such as Coldwell Banker, Sotheby's International Realty, Century 21, The Corcoran Group, and the technology-based brokerages ZipRealty and Climb Real Estate. NRT has 787 offices and 47,000 sales associates. Selling and buying property can be very stressful but with the right agent it can be profitable and a fun experience. Ady is also a Notary Public and being a people person he wants to help negotiate for his clients making their transactions as smooth as possible. Ady’s goals are simple: He wants to be the best source of information on the Los Angeles area Real Estate market, as he assists clients through each transaction with care and professionalism. He is proud of his large referral base of clients who have placed their trust in him over the years. Why him, when there are so many good people out there?!?! • Sellers will have their property exposed to the largest team of sales professionals in the world by far. Coldwell Banker Agents sale more homes than anyone else. • Buyers will have the opportunity to view more properties exclusively. • And most importantly when you hire him you get a whole team working for you not just “only one person”. Ady Simion started his Professional Career as an Insurance Agent, and then mastered the Mortgage Industry focusing on helping buyers and sellers achieve their life dreams. He now is an Agent with the Largest Residential Real Estate Company in the nation and the world, Coldwell Banker, at the Pasadena office which is the leader in the areas in which he specializes. After finishing College Ady has consistently been a Top Producer in every office/business he worked at. He speaks English, Romanian and Spanish. Real Estate is constantly changing and working with an agent that has been involved in the Real Estate buying/selling process most of his life is always beneficial for clients. Call, text or e-mail him or just stop by to say Hi and ask any real estate questions you may have.

Posted on July 28, 2013, in Uncategorized. Bookmark the permalink. Leave a comment.

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