Expect Chinese Investor Sell-Off to Impact CRE Values

Chinese investors are dumping their commercial real estate investments, under pressure from the Chinese government as a result of the escalating trade war between the U.S. and China.  According to an article in the Wall Street Journal, Chinese investors sold $1.29 billion of U.S. CRE in the second quarter of 2018, while purchasing less than 1/10th of that amount. This is the first time the Chinese have been net sellers in 10 years.  Just as heavy Chinese investment activity previously boosted prices for U.S. commercial properties, a massive sell-off will likely put downward pressure on them.