Foreign Investment Trends in U.S. Commercial Real Estate (2026 Outlook)
By Michael Bull, CCIM
Introduction
Foreign investment continues to play a major role in U.S. commercial real estate, even with ongoing geopolitical tensions, policy shifts, and economic uncertainty around the world.
Based on insights from industry leaders and surveys from the Association of Foreign Investors in Real Estate (AFIRE), global investors are still very active in the U.S.—and for good reason. It remains one of the most stable and attractive places to put capital.
Here’s a look at what’s driving investor sentiment, where the money is going, and what trends are shaping the market right now.
How Foreign Investors Are Viewing the U.S.
Despite the noise around tariffs, politics, and global instability, international investors aren’t pulling back from the U.S.—they’re leaning in.
A few things stand out:
The U.S. is still seen as one of the safest real estate markets in the world
Most investors are looking to grow their portfolios, not reduce them
There are concerns, but they’re not slowing down investment activity
There’s a bit of a disconnect between headlines and reality—while the news may suggest caution, investor behavior tells a different story.
What’s Worrying Investors Right Now
That said, investors aren’t ignoring risk. A few key concerns keep coming up:
Regulatory Risk
This is at the top of the list. Uncertainty around taxes, zoning, and compliance continues to make investors cautious.
Energy Availability
This has become a bigger issue, especially with the growth of data centers, industrial facilities, and rising energy costs in some markets.
Economic and Policy Uncertainty
Geopolitical tensions, trade policies, and unexpected “black swan” events are always part of the equation.
Interest Rates
Interestingly, rates aren’t the biggest concern right now. Many investors expect them to stabilize or ease over time.
Where Investors Are Putting Their Money
Foreign investors are spreading capital across several property types, but a few sectors stand out.
Top choices:
Multifamily
Industrial (logistics and warehouses)
Office—though more selectively, with a focus on high-quality assets
What’s changing:
There’s renewed interest in Class A office properties as pricing adjusts
Industrial is still strong, though growth is leveling off after a surge
Hospitality continues to lag as it works through a slower recovery
One notable shift: office, which many investors avoided in recent years, is starting to come back into the conversation in certain markets.
The Markets Getting the Most Attention
Foreign capital is still flowing into major U.S. cities, though rankings are shifting slightly.
Top markets include:
New York
Dallas
San Francisco
Miami
Atlanta
Boston
Los Angeles
Raleigh
Washington, DC
Charlotte
A few trends worth noting:
Gateway cities are making a comeback
Some Sunbelt markets have cooled a bit
Secondary markets aren’t drawing as much attention as before
Cities like San Francisco are seeing renewed interest
Why Atlanta Continues to Stand Out
Atlanta remains a consistent favorite among international investors.
Its appeal comes down to a few fundamentals:
A diverse and growing economy
Strong infrastructure
Lower climate risk compared to coastal markets
Ongoing development, especially in Midtown
Its steady presence on “top markets” lists reflects long-term confidence more than short-term hype.
Debt vs. Equity: How Strategies Are Shifting
Investors are adjusting how they deploy capital depending on where we are in the cycle.
Recently:
There’s been more activity in debt funds
Interest in equity is picking back up
Institutional investors are generally keeping leverage low
Why the shift?
Debt offers more stability in uncertain times
Equity creates upside as pricing resets
Many investors are balancing both to manage risk
Migration and Demographic Trends
Population shifts are also starting to evolve—and that matters for real estate demand.
What we’re seeing:
Migration to the Sunbelt may be slowing
Some growth is returning to major gateway cities
Increased interest in “water belt” regions with strong infrastructure and resources
On the demographic side:
Slower immigration could impact housing demand
An aging population will influence healthcare and housing needs
Where the Opportunities Are
Many foreign investors see the current market as a window of opportunity.
Pricing corrections are creating better entry points
Office distress is opening the door for adaptive reuse (like residential conversions)
Industrial and data-related assets remain long-term plays
The bigger picture:
Long-term thinking is key
Short-term volatility isn’t driving decisions
Structural changes—like AI, energy demand, and manufacturing—are shaping what comes next
How Investors Are Thinking Strategically
Across the board, a few themes keep coming up:
Focus on fundamentals, not headlines
Stay close to local market insights
Diversify across property types and locations
Position for long-term growth cycles
One idea that resonates: instead of trying to predict winners, many investors aim to be “suppliers to growth.”
Conclusion
Foreign investment in U.S. commercial real estate remains strong and resilient. Even with ongoing risks—regulatory, economic, and geopolitical—the U.S. continues to stand out as a top destination for global capital.
Looking at 2026:
Investment into the U.S. is expected to continue
Sector preferences will shift with the market cycle
Capital may rebalance between Sunbelt and gateway cities
Long-term fundamentals will remain the main driver
Hear More
Listen as Michael Bull interviews Gunnar Branson with AFIRE about the 2026 international investor survey:
https://podcasts.apple.com/us/podcast/afire-international-investor-2026-survey-with-gunnar/id398600916?i=1000749135690
Interested in learning more, or buying and selling U.S. commercial real estate? Contact Michael Bull.
Michael Bull, CCIM
Commercial Real Estate Advisor
Bull Realty – TCN Worldwide
404-876-1640 x101
Michael@BullRealty.com