Canada is cooling on US trophy towers, eh?

Firms like Ivanhoe Cambridge are betting on industrial properties

New York /
Aug.August 23, 2017 11:00 AM
 

Oh Canada, why won’t you buy our office buildings anymore? The friendly neighbor to the north is cooling on trophy commercial properties after years of frenzied buying and started shifting its focus to industrial and multifamily buildings.

A mere 39 percent of Canadian investment in U.S. real estate in the first half of the year went into office buildings, compared to 95 percent for Japanese, 81 percent for German and 71 percent for Chinese investors, according to Real Estate Alert.

Industrial properties accounted for 29 percent of Canadian spending, and multifamily buildings for another 27 percent. In one noteworthy deal, Montreal-based pension fund manager Ivanhoe Cambridge paid TPG Real Estate $1 billion for Evergreen Industrial Properties last month.

One reason why Canadians are less keen on trophy towers is that they tend to know the market better and are more willing to venture off the beaten path. “Canadians are more mature in their U.S. exposure and participation, and more comfortable with the market” than other foreigners, JLL researcher Sean Coghlan told REA. “At the core, this connects to the continuity in culture between the markets, similarities of the demographics and sectors, and a resulting risk appetite which is greater than other foreign sources.” [REA] — Konrad Putzier


Related Articles

arrow_forward_ios
Floor & Decor CEO Thomas Taylor and 4 Henry St in Commack (Floor & Decor and Google Maps)
Floor & Decor moving into site of shuttered Target in Commack
Floor & Decor moving into site of shuttered Target in Commack
Mayor Steven Fulop (Getty, iStock)
Jersey City to provide up to $10K more rent relief per tenant
Jersey City to provide up to $10K more rent relief per tenant
Atlas Hospitality Managing Member Raj Guru and Vinod Chand with 711 Seventh Avenue (Atlas, Google Maps)
Atlas plans 401-room hotel at 711 Seventh Avenue
Atlas plans 401-room hotel at 711 Seventh Avenue
Social Construct's co-founders Ben Huh and Michael Yarne (iStock)
Proptech startup Social Construct shutting down
Proptech startup Social Construct shutting down
AEW Global CEO Jeff Furber (left), North America CEO Jonathan Martin and 60 Charlton Street (AEW, APF Properties)
AEW purchases boutique Soho office building for $86.2M
AEW purchases boutique Soho office building for $86.2M
CBRE's Emma Giamartino and Bob Sulentic (CBRE, iStock)
Flush with cash, CBRE is ready to spend
Flush with cash, CBRE is ready to spend
GCP CEO Alan Yang (Getty, GCP)
GLP raises $2.3B for logistics property fund
GLP raises $2.3B for logistics property fund
Alphabet CEO Sundar Pichai and Twitter CEO Jack Dorsey (Getty)
Twitter, Google latest big companies to delay office returns
Twitter, Google latest big companies to delay office returns
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...