Multiple foreign investors have purchased hundreds of millions of dollars’ worth of real estate properties in the Silicon Valley area. This may be good news for these investors, who may see their bottom lines rise over time as they offer lucrative commercial leases to business owners. It may also be good news for the community and other parts of California, including Los Angeles, which may continue to experience economic growth as a result of such purchases.
The foreign investors have purchased hotels and office campuses. However, their purchases may come as no surprise, as Silicon Valley remains a real estate investment hot spot. Investors overseas still see the area as the best place for purchasing property and witnessing innovation.
A large number of investors specifically come from Asia, with the most active of them being affiliates who are under the control of Han’s Laser Technology Industry Group, based in China. These investors have spent a minimum of $199 million in a total of four acquisitions beginning this past spring. Their purchases have included commercial real estate in San Jose and Sunnyvale. However, one of the biggest property purchases by Asian investors is the purchase of a complex spanning 941,000 square feet in Santa Clara by CBRE Global Investors.
Purchasing commercial real estate to make commercial leases available can be an exciting yet daunting endeavor. Simple mistakes can end up costing an investor large sums of money, time and energy. However, a real estate attorney in Los Angeles can provide the necessary guidance for navigating these types of deals in the Golden State.
Source: mercurynews.com, “Asian buyers pour $300 million into Silicon Valley buildings“, George Avalos, Nov. 7, 2017