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Chinese Government Moves to Reduce Overseas Real Estate Investments

The U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space –  could soon find out what happens when the government of the world’s largest country tightens the spigot on overseas investments from its citizens.

Last week, the State Council of the People’s Republic of China officially announced measures to curb outbound investment – a move Chinese officials had been hinting at all year.

Announcing the new measures were intended to promote the “healthy growth of overseas investment and prevent risks,” the new directives from China’s State Council cover all overseas investments including U.S. and Philadelphia commercial real estate properties, companies, and projects.

This report in relation to national and Philadelphia commercial properties is being offered through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm, and was provided by the CoStar commercial real estate information company.

Prominently featured on the restricted list of the new investment guidelines now in effect worldwide – and in the U.S. and Philadelphia commercial real estate markets – are real estate, hotels, casinos, entertainment, sport clubs, outdated industries, and projects in countries with no diplomatic relations with China, as well as “chaotic regions” and nations that should be limited by bilateral and multilateral treaties concluded by China.

In addition, China said it would redirect overseas investment currently in national and Philadelphia commercial real estate listings specifically to support the framework of its 2013 “Belt and Road Initiative.” More specifically, China said it would encourage domestic investors to put their money into eligible projects in Southeast Asia, Pakistan and Central Asia, and beyond to the Middle East, Europe and Africa. The State Council said it would encourage companies to invest up to $1 trillion in that initiative, with the goal of strengthening China’s trade links in those regions, which have surged this year.

Mergers and acquisitions by Chinese companies in countries that are part of the 68 countries officially linked to the Belt and Road Initiative – and are not among U.S. and Philadelphia commercial real estate listings – totaled $33 billion year to date, surpassing the $31 billion tally for all of 2016.

At the same time, Chinese investment in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – has plunged by 50 percent in the first half of 2017. However, despite the huge drop, the amount of Chinese money flowing to the U.S. is still likely to be the second-highest for Chinese investment in the U.S. on record, including mergers and acquisitions, it was reported.

For more information about Philly office space, Philly retail space and Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly office space, Philly retail space and Philly industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space, Philly retail space or Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

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