Foreign Bets on US Real Estate
Business Week reports that foreigners bought $37.7 billion worth of commercial property in the United States in 2006. Investment in Manhattan was a 60.4%; Boston 450.2%; and Chicago 80.4%.
No doubt they overpaid, but these purchases represent only about 5% of the balance of trade deficit. Could this be leading to a repeat of the foolish Japanese real estate spending spree in the 1980s?
See Arndt, Michael. 2007. “An Office Party.” Business Week (12 March): p. 16.