Over the past decade, New York City’s commercial real estate market has been significantly influenced by international investment, with foreign capital playing a crucial role in shaping its landscape. From 2020 to 2024, the dynamics of foreign investment have evolved, influenced by global economic conditions, changes in market preferences, and the impact of the COVID-19 pandemic. Historically, New York City has been a prime destination for international investors seeking stable returns in a robust market. However, recent years have seen shifts in investment strategies and priorities, reflecting broader global trends and local challenges.
From 2020 to 2024, the total volume of international capital flowing into U.S. commercial real estate has experienced fluctuations. In 2020, foreign investment in U.S. commercial real estate was $52.6 billion, a 40% decline from previous years due to pandemic-related challenges, according to global commercial real estate services firm Newmark.
By 2023 and 2024, international interest began to recover, particularly in sectors such as industrial and multifamily properties. In 2021, Canadian investment in U.S. real estate, particularly in New York, jumped to $27 billion, reflecting a 115% increase from the average annual volume of $13 billion, according to professional services organization Deloitte US. New York City remained a top destination, although the composition of investments and the types of properties attracting foreign capital have shifted over time. This period saw a growing preference for industrial and multifamily assets, with traditional sectors like office and retail witnessing a relative decline in foreign interest.

Safe Haven for International Investments
Foreign capital has been a key driver of growth and stability in New York City’s commercial real estate market. Even during the pandemic, international investors continued to view NYC as a safe haven, providing liquidity and stability in a market otherwise experiencing volatility. The industrial sector, in particular, saw significant foreign interest, driven by the global boom in e-commerce and logistics. Deloitte US reported that by 2024, industrial properties accounted for over 30% of foreign investment in U.S. commercial real estate, up from 15% in 2020. Similarly, the multifamily sector attracted substantial foreign capital, with foreign investors drawn to the resilience of rental incomes and the sector’s ability to offer inflation protection through annual rent adjustments.
In terms of specific investments, notable transactions include the acquisition of a 45% stake in 1221 Avenue of the Americas by China Investment Corporation, valuing the property at $2.29 billion, as reported by Newmark. 1221 Avenue of the Americas is one of Rockefeller Group’s flagship properties in Manhattan, a 2.6 million square-foot office tower designed by Abramovitz and Harris, the architects for all of Rockefeller Center. Notable tenants include White & Case, NBCUniversal, Sirius XM, and Deloitte, and restaurants Del Frisco’s Double Eagle Steakhouse, Oceana, Zibetto Espresso Bar, Chipotle, and 48 Lounge.
Brookfield Asset Management, a Canadian firm, played a major role in the development of One Manhattan West, a 67-story office tower that opened in 2019. As of 2022, a joint venture of Brookfield, the Qatar Investment Authority (QIA), and the US-based Blackstone Group owns the building. The total cost of One Manhattan West was around $2.1 billion, showcasing the scale of foreign investment in large-scale commercial projects in NYC.
QIA also made headlines in 2016 when it acquired a 9.9% stake in the Empire State Realty Trust, the owner of the Empire State Building. The deal was valued at approximately $622 million. In 2014, Singapore’s sovereign wealth fund, GIC, partnered with Related Companies to acquire a 44% stake in the Time Warner Center for $1.3 billion. This investment in the mixed-use skyscraper, located in Columbus Circle, exemplified the strategic interest of Singaporean capital in premier NYC properties.

Shifts in Investment Patterns
Despite the positive contributions, the past few years have also highlighted significant challenges associated with foreign investment in NYC’s commercial real estate. One of the most notable trends has been the declining interest in traditional office spaces, which have historically been a favorite among international investors. The pandemic-induced shift towards remote work and the uncertainty surrounding the future of office spaces have led to a significant reduction in foreign investment in this sector, from 25% pre-pandemic to just 18% by 2024, as reported by Deloitte US. Office vacancies in Manhattan, for instance, climbed to 20.3% by mid-2024, further dampening foreign investor enthusiasm for this sector, according to financial services giant JP Morgan.
Geopolitical tensions, particularly between the U.S. and China, have also led to increased scrutiny and regulatory hurdles for foreign investors. Chinese investments, which once played a dominant role, have slowed considerably due to government-imposed capital restrictions and heightened regulatory oversight in the U.S. Additionally, the rising interest rates and economic uncertainties in 2024 have posed further challenges, making it more difficult for foreign investors to justify the high costs associated with NYC real estate. The shift towards secondary markets and alternative asset classes like industrial properties also reflects a broader trend of diversification away from traditional gateway markets like New York City.

Adapting to Global Trends
The period from 2020 to 2024 has been one of both resilience and transformation for New York City’s commercial real estate market. While the city has continued to attract significant foreign capital, the nature and focus of these investments have shifted in response to global trends and local challenges. The growing preference for industrial and multifamily properties highlights the adaptability of international investors, who are increasingly seeking opportunities that align with emerging economic realities and sectoral strengths.
Looking ahead, the role of foreign investment in NYC’s commercial real estate will likely continue to evolve. As the city navigates the post-pandemic landscape, maintaining its appeal to international investors will be crucial. This will require addressing the challenges associated with office vacancies, regulatory complexities, and the broader economic environment. Nonetheless, the foundational strengths of New York City as a global financial center and its ability to attract capital from around the world remain robust, ensuring its continued prominence in the international real estate market.