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Will the Chinese Pull Out Cause a Local Correction?

With Chinese investment—one of the city’s biggest players—down dramatically, is L.A. commercial real estate headed for a pricing correction?

Greg Karns Greg Karns

Chinese investment in the US dropped 80% last year following new outbound capital restrictions from the Chinese government. In Los Angeles, which saw a majority of the Chinese investment in the last three years, the abrupt decline in investment activity could mean a local pricing correction, according to Greg Karns, a partner at Cox, Castle & Nicholson and an expert on Asian real estate investing. Karns says that we haven’t seen a pricing correction yet, but the timeline for transactions has gotten longer. With interest rates expected to rise, Karns says that this year could be a turning point. We sat down with Karns for an exclusive interview to talk about how the pull out of Chinese investment is affecting the commercial market in Los Angeles and what a pricing correction could mean for the market.

GlobeSt.com: Los Angeles has seen a strong amount of investment activity from China. How do you think the decline in Chinese investment will impact the Los Angeles market?

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Kelsi Maree Borland

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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