Asian investors are increasing allocations to US, as global investors’ flows to the sector exceed pre-pandemic levels. But the allocation mix is shifting to accommodate Covid-19’s effects.

Only domestic investors were ahead of their Asian counterparts as the largest groups to invest in US property in the second quarter of this year, allocating $2.6 billion, up 49% on the same period a year earlier, according to Real Capital Analytics (RCA). Canadian investors allocated $2.5 billion and those from Europe invested $1.1 billion.

One consequence of the pandemic has been the relative outperformance of non-central city locations. Pricing in the office sector has followed the disparate trends in deal activity. In the year to July, the RCA suburban office price index jumped 11.7%, while the CBD office index fell 4.6%.

Where prices have fallen in the US office sector, investors are looking to capitalise: “We expect the office market…

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