According to preliminary Q4 2016 numbers from RCA, total foreign investment into U.S. commercial real estate declined since its peak in 2015. However, as coastal markets are seeing their cross-border deal flow tighten, Midwest markets like Minneapolis-St. Paul are benefiting from more affordable inventory and less volatile economic growth. In the final quarter of 2016, Shorenstein Properties sold 33 South Sixth Street to Chinese investor HNA Group for $315 million. This was the largest office sale in Minneapolis’ history. The opportunity for additional foreign direct investment (FDI) will escalate as Asian and European firms seek real estate investments in growing, stable markets.

1. • According to preliminary Q4 2016 numbers from RCA, total foreign investment into U.S. commercial real
estate declined since its peak in 2015. However, as coastal markets are seeing their cross-border deal
flow tighten, Midwest markets like Minneapolis-St. Paul are benefiting from more affordable inventory
and less volatile economic growth.
• In the final quarter of 2016, Shorenstein Properties sold 33 South Sixth Street to Chinese investor HNA
Group for $315 million. This was the largest office sale in Minneapolis’ history. The opportunity for
additional foreign direct investment (FDI) will escalate as Asian and European firms seek real estate
investments in growing, stable markets.
Source: JLL Research, Real Capital Analytics
Cross-border investment still strong, but
preliminary 2016 estimates dipped Y-O-Y
Minneapolis–St. Paul
Chart of the week: January 16, 2017
$4
$11 $10
$18
$25
$41
$76
$16 $5
$13
$25
$30
$42 $43
$99
$65
4.1%
9.7%
7.2% 7.3% 6.8%
9.4%
13.2%
9.1%
7.1%
8.5%
10.5% 10.0%
11.5%
10.0%
18.1%
13.5%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
$0
$20
$40
$60
$80
$100
$120
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
ForeignCapitalPercentageof
Total
Transactionvolume($B)
Percent of U.S. CRE acquisitions made by foreign buyers
Foreign Investment in U.S. CRE
Percent of Total