CHICAGO—A few years ago, American investors in office properties went on a buying spree in the Chicago metro area. Their interest has cooled somewhat as prices have increased in Chicago and other gateway markets, and many have now decided to focus on quality assets in secondary markets. However, Chicago remains on the radar screens of foreign investors that look to US commercial real estate for investment safety.
According to data from Transwestern, 2017 is on track to have at least 20% of the total volume of investment, (with a net volume of about $308 million as of mid-November), be from foreign buyers. Chicago received a net volume of over $231.3 million in foreign investment in 2016, accounting for 12% of the total investment in Chicago office properties.
To date, investors from China lead the pack – spending $375.5 million to purchase 10 properties in the Chicago area. Canadians invested the second most with $163 million for two properties, followed by Swiss buyers with $27.8 million for one property. German investors bought one property for $9.2 million.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
