Cross-border capital in Orange County grew last year for the fourth straight year, setting a record $1.2 billion, up 14.6% over 2015 (Figure 1). Foreign buyers last year accounted for 14.7% of investment activity, the region’s highest proportion of international capital on record, as the proportion of cross-border capital in the U.S. as a whole was about 13% of direct investment.
Foreign investment here bucked the national and global trends of softening activity. OC was consistent with many other markets, in that the bulk of investment was channeled into the office and hotel sectors, popular targets for foreign buyers looking for trophy assets in an overcrowded market. Hotels led the way, accounting for almost $600 million, up 330% over 2015, and office assets closely followed, attracting about $470 million in investment (Figure 2).
China was a predominant source of capital here. Chinese capital flows surged 62.8% to $629.5 million and accounted for half of all foreign capital coming in. Germany emerged as a major new source of foreign capital last year, recording $387 million in investment, and Canada remained active, bringing $184 million to the market.
—Analysis by CBRE
