LaSalle: Changes in Dynamics Lead to Changes in Real Estate Investors’ Strategies
Elevated inflation, slowing economic growth and higher interest rates are causing real estate investors to re-visit earlier strategies, according to LaSalle’s 2022 Mid-Year Investment Strategy Annual (ISA). The gap between favored and non-favored asset classes is continuing to widen as investors gravitate to property types with strong underlying fundamentals, which appear well-positioned to withstand a potential economic slowdown.
“Real estate generally provided shelter during the waves of volatility that swept through the securities markets in the first half of the year,” said Jacques Gordon, global head of research and strategy at LaSalle. “In the second half, we foresee different dynamics unfolding. The big change has been the sharp rise in inflation in Western countries and a ‘regime shift’ from highly accommodative to tightening monetary policies by several central banks.”
Accordingly, Gordon continued, “Our guidance for investors to seek inflation protection in real estate is a focus-theme of our mid-year update.”
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).