Our 2017 Capital Flows Year-end Review and 2018 Outlook addresses how vibrant the commercial real estate industry remains, in terms of property market fundamentals and capital markets, nearly nine years since the Great Recession ended. Occupancies and rents across most property sectors and both sales and leasing transaction levels remain at historically high levels, while assets in many markets command record pricing.

If there’s a notable weakness, it’s the pullback in cross-border capital flowing into the U.S. The pullback is accounted for by China and reflects not waning investor interest, but rather, mandates by Chinese regulators. With Chinese authorities continuing to pressure Chinese firms to refrain from offshore investing and even divesting from current holding, the impact on U.S. capital markets are material, particularly for trophy assets in leading markets.

Still, U.S. markets retain their appeal for both domestic and cross-border capital due to its compelling returns and relative security, which will limit near-term downside risks to the U.S. capital markets.

Key takeaways from this report include:

For more insights, explore the 2017 Capital Flows Year-end Review and 2018 Outlook.