Why International Buyers Are Flocking to U.S. Commercial Real Estate

04/07/2025

Industry Insights International Outlook

Why International Buyers Are Flocking to U.S. Commercial Real Estate (And How Brevitas Makes It Easy)

In recent years, international real estate investment in the USA has surged as investors from Latin America, Asia, the Middle East and beyond seek the stability and opportunity of U.S. commercial properties. Global buyers are moving capital into dollar-denominated assets at unprecedented rates – a trend driven by economic turbulence in their home countries and the allure of America’s robust markets. In this article, we explore why foreign investors are buying US property in record numbers and how Brevitas makes these cross-border deals easier than ever.

Global Capital Flows into U.S. Commercial Real Estate

Foreign capital is pouring into U.S. commercial real estate. In fact, cross-regional investment into North America rebounded strongly in late 2024 – U.S. inflows jumped 40% year-over-year to about $9 billion in the second half of 2024. Investors from around the world have been targeting high-quality assets in major American cities. For example, Latin American high-net-worth individuals have long favored markets like Miami as a safe haven for wealth amidst instability at home. Asian buyers (particularly from China, India, and beyond) represent the largest segment of foreign purchasers of U.S. real estate, accounting for roughly 36% of international transactions by some measures. Middle Eastern sovereign wealth funds and family offices are also actively investing, often focusing on trophy assets in global cities. In short, the U.S. has become a magnet for international capital seeking both security and growth.

Why Investors Are Seeking Dollar-Denominated Assets

One key factor behind this trend is the strength and stability of the U.S. dollar. Many emerging-market investors face high interest rates and currency risk at home – their local currencies may be depreciating due to inflation or political upheaval. Parking money in dollar-based assets is a way to preserve and grow wealth. As one economist noted, “Many people seek exchange rate protection because the [home] currency is devalued as inflation or interest rates get out of control… the dollar appreciates with the consequential outflow of resources”. In other words, moving capital into U.S. real estate provides a hedge against volatility: rental incomes in USD and potential appreciation in a stable currency. Furthermore, U.S. interest rates (while higher than a few years ago) are often seen as contributing to a stronger dollar and more attractive yields relative to risk in developing markets. This combination of safety and reasonable returns makes American commercial properties very appealing to global investors.

Political and Economic Stability

Beyond currency considerations, the relative political and economic stability of the United States is a big draw. Investors from regions experiencing uncertainty – be it a leftward political shift in parts of Latin America or geopolitical tensions in parts of Asia – view U.S. real estate as a secure harbor. The U.S. offers transparent legal systems and property rights, which can be a refreshing change for those used to more unpredictable environments. As a result, even amidst global turmoil, the U.S. commercial real estate sector is seen as a reliable long-term bet. This sentiment has only grown stronger during periods of global instability, reinforcing the U.S.’s position as a top destination for international real estate capital.

Top U.S. Markets Attracting Foreign Investors

While foreign buyers invest across the country, a few top U.S. markets for foreign CRE investment consistently lead the pack:

Miami, Florida – “Gateway to the Americas”

Miami has emerged as a premier destination for Latin American investors. Its proximity, cultural ties, and economic climate make it a natural choice for those seeking to diversify out of their home countries. In 2024, foreign real estate purchases in Miami totaled over $5 billion, with Latin American buyers making up roughly one-third of those transactions. High-net-worth individuals from Brazil, Argentina, Mexico, Venezuela and beyond are buying everything from luxury condos to office buildings in Miami. They’re drawn by Florida’s favorable tax environment and Miami’s status as a global business hub. The city’s booming real estate scene – spanning waterfront high-rises and commercial developments – offers both a safe haven for capital and an appealing lifestyle play.

Los Angeles, California – Pacific Gateway

Los Angeles has long been a magnet for international wealth, especially from Asia and the Middle East. As the second-largest U.S. city, LA offers a deep market with diverse opportunities – from commercial towers in Downtown to retail and industrial properties across Southern California. Chinese investors were notably active in California in past years (though capital controls have tempered that recently), and interest from Korea, Japan, and other Asian nations remains strong. Middle Eastern investors, including sovereign wealth funds, have also targeted Los Angeles for its trophy assets in entertainment, hospitality, and prime office real estate. The draw? LA combines global city cachet with sprawling growth, making it an attractive place to park capital for both appreciation and prestige.

Dallas, Texas – The Economic Powerhouse

Dallas is increasingly on the radar of foreign investors looking for growth markets. As a business-friendly metro with a booming population and diversified economy, Dallas offers something that coastal cities may not: higher yields and rapid growth potential. The city’s low taxes and pro-business environment have attracted major corporations, driving demand for office parks, warehouses, and housing. For investors, this means opportunities in everything from multifamily complexes to logistics centers. Dallas’s competitive property prices (relative to New York or San Francisco) and strong rent fundamentals provide attractive returns. It’s no surprise that analysts often cite Dallas as a top city poised for commercial real estate success, thanks to its mix of stability and upside.

New York City, New York – The Global Safe Haven

No list of foreign investment hotspots would be complete without New York City. Long regarded as a safe haven for global capital, NYC continues to draw investors from every corner of the world. Whether it’s a pension fund from Canada buying an office tower, a tech entrepreneur from Europe purchasing a Manhattan condo, or a sovereign wealth fund from the Middle East acquiring a stake in a Hudson Yards project, New York sees it all. The city’s sheer size and status as an international financial center mean that there is always demand for quality properties. Even in market lulls, foreign buyers view New York real estate as a long-term store of value. In the second half of 2024, for example, prime assets in New York were among the top targets for cross-regional investors seeking to deploy capital. The Big Apple’s combination of cultural influence, economic might, and liquidity keeps it at the pinnacle of foreign investor interest year after year.

Tax and Legal Considerations for Foreign Buyers

Investing in U.S. property as a non-U.S. buyer comes with its own set of tax rules and strategies. Savvy international investors often take advantage of certain structures and provisions to optimize their investments:

FIRPTA – Plan for Withholding Tax

Foreign investors should be aware of FIRPTA (Foreign Investment in Real Property Tax Act), a U.S. law that imposes a withholding tax when they sell a property. Under FIRPTA, if a foreign person sells U.S. real estate, the buyer is generally required to withhold up to 15% of the sale price and remit it to the IRS. This withholding is a way for the IRS to ensure foreign sellers pay any capital gains tax due on the sale. The good news is that FIRPTA is not an extra tax per se – it’s a prepayment that can be refunded or credited against the actual tax liability when the seller files a U.S. tax return. Nonetheless, the 15% hold-back can be significant, so international sellers typically plan ahead. Some strategies to mitigate FIRPTA’s impact include applying for a withholding certificate (to reduce the withheld amount if the tax due will be lower) or structuring the investment through entities that may qualify for exemptions. It’s crucial for foreign investors to work with tax advisors who understand FIRPTA so there are no surprises at closing time.

1031 Exchanges – Deferring Capital Gains

Just like U.S. investors, foreign buyers can utilize a Section 1031 like-kind exchange to defer capital gains taxes when selling one property and buying another. A 1031 exchange allows an investor to reinvest proceeds from the sale of an investment property into a new property of equal or greater value, deferring the capital gains tax that would otherwise be due. This is a powerful tool for compounding real estate wealth over time. Importantly, 1031 exchanges are available to foreign owners as long as they are exchanging U.S. real estate for U.S. real estate. One wrinkle is that if FIRPTA withholding applies to the sale, those withheld funds might be treated as “boot” (taxable) if not reinvested – so careful coordination is needed. Still, many international investors successfully use 1031 exchanges to roll their gains into bigger deals and keep growing their U.S. portfolios tax-efficiently.

Using U.S. LLCs and Other Structures

An often-recommended approach for foreign investors buying US property is to do so via a U.S. entity, commonly a Limited Liability Company (LLC). Holding real estate through a U.S. LLC can provide multiple benefits. First, it offers liability protection – the LLC shields personal assets from any issues related to the property. Second, it can yield tax advantages; owning property through an LLC may lower certain tax liabilities and allows deduction of expenses like maintenance, management, and depreciation at the entity level. Third, an LLC can simplify estate planning: if a foreign investor passes away, the LLC interest can often be transferred more easily to heirs (and may help avoid U.S. estate taxes that would apply if the property were held directly). Finally, using an LLC gives a professional structure to the investment and can sometimes ease transactions (for instance, selling the LLC that owns a property, or adding partners). It’s not mandatory for foreign buyers to use an LLC, but many do because it’s a “simple strategy that can help overseas investors protect their U.S. property, reduce taxes, and make estate planning easier”. Of course, investors should consult legal and tax professionals to choose the optimal ownership structure (LLC vs. corporation vs. trust, etc.) based on their specific situation.

How Brevitas Simplifies International CRE Deals

Transacting in a foreign market can be daunting – but this is where Brevitas comes in. Brevitas is designed as an international-friendly commercial real estate platform that streamlines the process of finding and closing deals across borders. Here’s how Brevitas makes it easy for global investors:

Global Property Search: Brevitas enables investors to search and discover opportunities worldwide with ease. The platform isn’t limited by geography; it connects a wide-reaching community of buyers and sellers seeking properties around the globe . Whether you’re in São Paulo looking at a listing in Texas, or in Dubai browsing an office in New York, Brevitas’s robust search tools make it simple to find the right investment. You can filter by property type, location, price range, and more, ensuring that international buyers have full visibility into U.S. listings (and vice versa).
Smart Landing Pages & Marketing: When it comes to showcasing properties to an international audience, Brevitas shines. The platform provides single-property landing pages and digital marketing tools that present listings attractively to overseas investors. Sellers can easily create professional, shareable pages for each property – complete with photos, financial details, and location info – which can be viewed from anywhere in the world. Brevitas also offers built-in email campaign features to reach thousands of potential buyers, which is especially useful for marketing to foreign investors who may not be local . High visibility and polished presentation help listings stand out to international capital.
Multilingual Support (Coming Soon): Recognizing the global nature of its user base, Brevitas is rolling out multilingual features to better serve non-English-speaking investors. This will include site interfaces and possibly listings in multiple languages, making it more comfortable for international users to navigate and understand opportunities. By breaking down language barriers, Brevitas aims to be among the best CRE platforms for international buyers, allowing them to engage with U.S. deals in their preferred language. (Stay tuned as these features launch!)
Secure Deal Rooms & Collaboration: Cross-border deals often require extensive due diligence and communication. Brevitas addresses this with its integrated Deal Room tools. A Brevitas Deal Room is a secure, virtual workspace where buyers and sellers (and their brokers) can share documents, sign NDAs, and negotiate – all in one place. This is invaluable for international transactions, as it keeps sensitive files (like contracts, financial statements, passports for KYC, etc.) in a protected online hub accessible 24/7. It streamlines communication despite time zone differences and reduces the need for costly travel or mailing documents. Essentially, Brevitas provides an end-to-end digital transaction management system tailored for global deals. From initial interest to closing, everything can happen on the platform, saving time and ensuring nothing falls through the cracks.

These features, combined with Brevitas’s intuitive interface and dedicated support team, remove much of the friction that foreign buyers typically face. Instead of cobbling together emails, WeTransfer links, and late-night phone calls, investors can rely on a single platform to handle it all. Brevitas also partners with industry organizations (it’s a Commercial Listing Platform Partner of the National Association of REALTORS®) which further boosts credibility and reach. For an international investor curious about U.S. properties, Brevitas truly makes the process easy to navigate and efficient.

Conclusion & Next Steps

It’s clear foreign investors buying US property is a trend that’s here to stay. High net worth individuals and institutions across Latin America, Asia, the Middle East and Europe are flocking to U.S. commercial real estate for its stability, currency strength, and growth opportunities. From Miami’s condos to Dallas’s office parks and New York’s skyscrapers, international money is shaping the landscape of American cities. While there are important tax considerations to plan for (like FIRPTA and the use of LLCs), the hurdles are manageable with the right knowledge and partners.

Platforms like Brevitas are transforming the way these cross-border investments happen, making it simpler than ever for a buyer halfway around the world to find their next U.S. property deal. With global search capabilities, innovative marketing tools, upcoming multilingual support, and secure deal management, Brevitas has positioned itself as one of the best CRE platforms for international buyers.

If you’re an international investor ready to explore U.S. commercial real estate, now is the time to take action. The market is ripe with opportunity and you have the technology at your fingertips to seize it. Don’t let borders be a barrier. Embrace the flock to quality and consider the U.S. for your next big investment.

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