China’s latest explosion of international Texas Commercial Mortgage investments has been curbed by the government. Don’t expect China to shrink from the global lending market, however.
Just last year, a significant trend caught the attention of Texas Commercial Mortgage market analysts worldwide. After spending much of the two decades playing catch-up, China established itself as a major player in the global commercial real estate market. According to CNBC, China investments in overseas real estate assets exceeded $28 billion. These investments played a major role in helping the country finally exceed the U.S. as the biggest cross-border real estate investor on the planet.
Now that China is the leading investor in international real estate, it make sense for those in the market here in the U.S. to start strategizing about relevant opportunities. According to the same CNBC article, Chinese investors still have over $200 billion of capital in the bank, ready to be invested into intriguing commercial real estate opportunities.
● Stateside investments significantly outpacing 2016 – Compared to 2015, China’s 2016 investments in international real estate represented a 56% increase. Why the sudden surge in investments? One reason is cultural; the Chinese appreciate owning property and don’t mind investing their assets into buying more. The other reason is as security against the unpredictable yuan. Regardless of why, the reality is that Chinese investors have seemingly endless sources of capital that they are eager to spend on overseas property. Accepting and embracing this new status quo presents a number of intriguing opportunities for savvy investors.
● Chinese investors still flocking toward American properties – Despite the fact that the Chinese are new players in the U.S. Texas Commercial Mortgage industry, they show no signs of slowing down their investments anytime soon. Data collected by CBRE and published by EPR Retail News revealed that international Chinese investments exceeded $45 billion in the first half of 2017. Just under half of that investment (approximately $22 billion) made its way into the United States. Additionally, New York now ranks just second after London as the top destination for China’s foreign investments.
● Government curbing of transactions may not deter individuals – In the last half of August, the Chinese government stepped into limit the flow of capital out of the country, reported Bloomberg. By placing a ban on “irrational” investments and specifically targeting real estate investments, the government has effectively limited the corporate world’s ability to participate in the global mortgage market. It is important to note that these regulatory changes crackdown on corporate investments, individual investments in commercial real estate in the United States are likely to continue.
China’s Explosive Growth Reflects New Space For Innovation In The Industry
The combination of China’s rapid ascension into the global mortgage market, as well as the introduction of new state regulatory restrictions, is bound to inspire even more innovation and bold international investments.
Let China’s exciting evolution in commercial real estate inspire your company to make a bold move.
Be sure to explore all of your options no matter what type of commercial real estate project your company is planning. A bit of input from a well-informed lender can make all the difference in the outcome of your investment.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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