Money Sloshing Around the Real Estate Market

For five year tenants of commercial real estate in the U.S. could thank the Federal Reserve and their loose monetary policy as a driving force behind rising rents.  In addition to the massive increase in U.S. dollar supply renters now have a second force to be aware of, foreign investment.

From Bloomberg:

Chinese developers are on an expansive shopping spree in the U.S. Completed commercial real estate transactions by Chinese investors in the six biggest metropolitan areas totaled almost $3 billion in 2013, up from $335.3 million the previous year, according to New York-based Real Capital.

Keep in mind that the sellers of these properties have seen a nice fat profit in large part to low-interest loans received from banks since the 2008 financial crisis.  Leverage can work wonders if your bet pays off.