Rising foreign investment flows into U.S. commercial real estate bode well for the CMBS sector, said Standard & Poor's.
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Cross border investment in CRE was on track to surpass $5 billion in the third quarter, an amount that has not been seen since the boom of 2007, S&P said in a release.
Canadians led among foreigners snapping up U.S. property, with Asian investors from China, Hong Kong and South Korea following behind. The bulk of activity has focused on the usual suspects — Manhattan, for instance, received over 40% of cross-border capital so far during 2011.
S&P pointed out that about 12% of CMBS 2.0 deals and over 14% of overall conduit CMBS are backed by loans within the Metropolitan Statistical Area of New York, according to Trepp data.
