Chinese investment in California real estate

On Behalf of | Aug 26, 2016 | Firm News |

The U.S. real estate market attracts investors from around the world, but some areas demonstrate more interest than others. According to research released in August 2016, China is at the forefront of foreign investors with stakes in U.S. holdings, and its citizens are on track to account for some $218 billion in North American property investment by 2020.

Experts say that although the $93 billion Chinese nationals sunk into residential U.S. properties during the first half of the 2010s surpassed the $17 billion they spent on commercial real estate, the two trends aren’t totally unrelated. According to the Asia Society, a big chunk of the residential purchases may have been spurred by investors who want to move to the U.S. on visas.

Chinese nationals who follow the growing trend and plant roots in the U.S. to be closer to their business holdings may receive a welcome from the hospitality industry. While many of the purchases made by Chinese investors already focused on industries like health care and hospitality, news sources predict that Chinese hotels will soon eye U.S. real estate with the hopes of establishing their brands in these new markets. With acquisitions in 2016 averaging around $1.5 billion in worth, it seems likely that these companies will encounter willing patrons.

Purchasing or managing commercial real estate can be complex undertakings. Developers must balance the needs of investors from far-flung reaches of the globe with local laws and a host of other concerns. Some may expose themselves to the possibility of construction litigation or title disputes should they fail to manage the logistics properly and deliver on their assurances. Developers who are looking at these types of complicated deals might find it useful to consult with attorneys so that they can protect their interests.

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