Foreign Investment Trends in U.S. Commercial Real Estate (2026 Outlook)

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