
Why APAC real estate deserves a fresh look
Why APAC real estate may offer growth, diversification, and value for institutional investors amid global market uncertainty in 2025.
Tariff-related concerns are causing global investors to consider their exposure to US assets, including commercial real estate (CRE). What does that mean for CRE in the US and around the globe? How might a potential prolonged pullback affect liquidity and prices?
To answer these questions, we examined the historical makeup of cross-border CRE investments for insights and then assessed the potential impacts of any changes. We provide the highlights below.
For a deep dive into our key takeaways from our US and global outlook, read the complete reports:
Cross-border investments in US CRE over the past decade, from 2015 to 2024, were primarily in traditional sectors, especially industrial warehouses and central business district (CBD) offices and in gateway markets, especially New York City in select sectors. They were larger assets in more expensive locations.
Based on this, we believe a sustained and material pullback of cross-border capital investment in US real estate, should it occur, would have:
We see two broad ways to manage risk from the liquidity and pricing impacts of a potential pullback of cross-border capital from the US market.
The US is the largest global CRE market, accounting for 38% of global transaction activity in the past 10 years.1 We examined the historic cross-border capital flows into the US to determine the potential impact on other key global real estate markets should capital flows be reallocated away from the US.
Our analysis of cross-border CRE investments since 2010 showed:
Get a deep dive into these key takeaways in Cross-border capital investment in U.S. commercial real estate and Cross border capital investment across global commercial real estate markets.
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