LaSalle Investment Management - Real Estate - North America

2018 Top 100 Real Estate ranking: 19http://www.lasalle.com/

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LaSalle

Corporate overview

LaSalle Investment Management is one of the world’s leading real estate investment managers, with $60.5bn of assets under management on a global basis. We are focused solely on one asset class: real estate. This enables us to fulfil our primary objective of delivering competitive investment performance, along with the highest levels of client service.

We have been active in both the private and public property markets across the Americas and Europe for over 35 years and in Asia Pacific for 15 years. We specialise in providing fully integrated real estate investment management services to a broad range of institutional investors including pension funds, corporations, endowments/foundations, insurance companies, sovereign wealth funds and individual investors. Whether listed or unlisted, direct or indirect, we offer investment opportunities that span geographies and cover the risk/return spectrum.

We operate across all major property types, and across all major markets within Europe, the Americas and Asia Pacific, making investments through separate accounts, commingled funds, debt, strategic partnerships, co-investment programmes and real estate securities. In doing so, we create tailored strategies for our clients that take advantage of compelling market opportunities that are aligned with their return objectives.

In North America, the firm has a deep, established platform with 300-plus employees located in 10 offices and managing over $20bn of AUM across all property types with on-the-ground acquisitions, asset and portfolio management, due diligence, finance, tax, legal and compliance, research and strategy and client servicing professionals.

Sector forecasts

INDUSTRIAL: The warehouse market is in excellent health, with 2Q 2018 availability rate down 10bps to 7.4%. Construction ramped up but demand more than matched it as it rebounded from a slower first quarter. Rent growth continues at a strong pace for industrial, leading other property types. Demand remains very healthy, benefiting from ecommerce and cyclical growth tailwinds with the most obvious risk being from escalating tariffs. The construction pipeline remains robust as well as many markets are now seeing a steady flow of new deliveries. The NPI returns for industrial continue to lead the index by a wide margin and investor interest in core warehouses remains very strong.

OFFICE: The US office vacancy rate declined 10bps in 2Q 2018 to 13.0%. Office demand rebounded from a weak first quarter to the highest level since the fourth quarter of 2015. New deliveries were steady and remain a factor in keeping vacancy rates relatively flat. In the second quarter, office rents trended marginally higher, with national gross asking rents increasing 0.4%, bringing the trailing year rent growth to 1.3%, given flat fundamentals a strong acceleration in rent growth is not expected. Trailing year NCREIF Property Index (NPI) office returns remained at 6.6%, which only trails industrial, but nonetheless lags the overall index.

RESIDENTIAL: Apartment vacancy declined in 2Q 2018, consistent with the typical seasonal strength, to 4.6%. This is 20bps down from a year ago, with strong absorption of new deliveries. Despite occupancy gains, year-over-year rent growth slowed to 2.5%, 30bps lower than a year ago. Suburban market fundamentals are largely balanced and continue to outperform by a narrowing margin. Downtown markets face more headwinds from new supply. The nationwide construction pipeline remains high and will remain a headwind for the market, with some markets more exposed than others. NCREIF Property Index (NPI) apartment returns lag the all property benchmark, but there is diversity by sub-type.

RETAIL: Stagnant demand growth combined with a lack of new supply kept US open-air retail fundamentals stable in the second quarter. Demand trended lower in the quarter as space vacated at power centres impacted the statistics. Retailer closure announcements have moderated from earlier in 2018, but continued to hit the headlines last quarter, under the cloud of e-commerce market share growth. Construction remains at a historic low of 0.3% as retailers are being very cautious with expansions. NPI returns for retail lag the index and are the lowest of all property types. Given the stress on the sector this is expected to persist for several years as appraised values trend lower.

Investment principles & strategy

At LaSalle, clients come first and we use our fiduciary experience to deliver competitive performance. Our many long-standing clients trust LaSalle and often invest in multiple mandates around the globe. A global investment perspective, fostered by the insights of our global research team and the experience of our fund managers, is matched by our ability to successfully execute deals, manage real estate and maximise returns for our clients.

LaSalle’s in-house proprietary research gives our clients unique insight into global property markets. We invest heavily in market analysis and investment strategy, believing that a deeper understanding of market dynamics directly influences our ability to deliver competitive investment performance.

The strength of the integrated relationship between research and investment teams is vital in generating ideas and investment opportunities for clients. Our Research & Strategy team identifies opportunities in the market, as well as develops client-specific strategies. It provides direction to the investment teams, whose knowledge and network of contacts ensure LaSalle access to both on-market and off-market opportunities.

Strategic corporate development

For over 35 years we have been focused on delivering superior real estate investment performance to our clients. We remain solely dedicated to real estate and seek to develop and deliver investment solutions which help our clients meet their investment objectives.

Our strong global platform, with over 700 people in 24 offices around the world, ensures we have the capacity to take on new business and launch new initiatives to capitalise on emerging opportunities.

Across our business, we selectively evaluate expansion into new real estate investment strategies and markets that complement our existing activities and meet the needs of current and prospective clients. In some instances, we may enter new business lines via acquisitions of established platforms, and in others we will enter new business lines organically.

LaSalle has recently acquired the Real Estate Multi-Manager (REMM) business of Aviva Investors. The existing London-based Global Indirect Business has been incorporated into a new global platform ‘LaSalle Global Partner Solutions’ with on the ground presence in London, New York, Chicago and Singapore.

COMPLIANCE STATEMENT

The information contained herein is for the sole purpose of providing general information to institutional investors about LaSalle Investment Management and its affiliates. Certain information herein sets out general views of LaSalle Investment Management regarding certain property markets and types of property therein. No representation is made concerning the accuracy of the information compiled herein, and no guarantee or assurance is given that any forecast or opinion in these materials will be realised. For the avoidance of doubt, the information contained herein is not investment advice and may not be construed as the promotion or marketing of any services or financial product sponsored or provided by LaSalle Investment Management or any of its affiliates. Securities offered in the United States through LaSalle Investment Management Distributors, LLC, a member of FINRA/SIPC.

News from IPE Real Assets

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White Papers / Research from LaSalle Investment Management - Real Estate - North America

Analysis from IPE Real Assets

  • US multifamily: Build it and they will still come?

     Multifamily developers and institutional investors continue to build more stock and new renters duly arrive. But, asks Christopher O’Dea, for how long? 

  • Investment trends: Public assets in private hands

    Some of the biggest global real estate investors are raiding the public markets to get hold of assets. Florence Chong investigates the take-private phenomenon

  • All change

    This edition of IPE Real Estate highlights three investor groups grappling with change. Two of them are effectively having it imposed on them.

  • Market Cycles: Fear of heights

    Have the major markets of New York and London reached a peak? We assess a seemingly precipitous real estate sector

  • Property Debt: Beyond the boroughs

    The story of UK property debt was all about the regions last year. Russell Handy reports on an industry looking firmly beyond London

View more Analysis from IPE Real Assets

Head Office
333 West Wacker Drive
Chicago
IL
60601
United States
Company website:
http://www.lasalle.com/
Parent Company:
JLL
Year Founded:
1980

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