Parking assets offer the potential for high returns in a sector traditionally overlooked by many investors, as office yields continue to compress in gateway cities across the US. According to one expert, active investors in parking lots can earn yields in the range of 12 to 18 percent, driven by sharp demand from companies where employee growth has far outstripped the capacity of existing parking structures.
These double-digit yields are among the factors drawing institutional investors like CIC and China Life to the niche asset class, as they deploy billions of dollars of capital into property investments worldwide. CIC, which had more than $813 billion under management in 2015, has emerged as China’s biggest buyer of overseas real estate and was the top investor in New York office properties in the 12 months through this past March, scooping up some $1.73 billion in skyscraper deals.
By Courtesy of Mingtiandi