LaSalle Investment Management’s NA-REGI is a leading indicator of economic strength in North America’s largest metropolitan areas. The REGI model is used by LaSalle Investment Management to help identify future demand and risks for commercial real estate, particularly office and industrial buildings. The Index is based on factors such as employment and population growth, as well as momentum and risk factors including volatility, diversity, and business costs. Four Canadian cities, Vancouver, Calgary, Toronto and Montreal, are included in the thirty-six North American cities evaluated.

The REGI rankings continue to reflect a relatively strong outlook for Canada. Underpinning Toronto’s strength is its diverse economy. Although the city’s manufacturing sector and the closely tied transportation sector have undergone some recent weakness as the Canadian dollar and oil prices have increased, both sectors are anticipated to improve in the coming years. Strong employment and population growth through 2009, as well as a positive economic outlook, were other major factors behind Toronto’s top ranking.

Phoenix ranked a close second to Toronto, primarily due to its booming residential real estate market and the economic boost housing conveys to the rest of the economy. People are being drawn to Phoenix from all over the U.S. Within the last year, Phoenix surpassed Atlanta to lead the United States in home building activity. The U.S. cities of Orlando and Raleigh ranked third and fourth, respectfully.

Calgary, the head office centre for Alberta’s energy industry, rounded out the top five NA-REGI cities. Strong oil and gas demand, and subsequent higher prices, have been a major boost to Calgary’s economy, and have contributed to the city’s low-tax environment. A good example of the city’s attractiveness is the recent relocation of Imperial Oil which moved its corporate headquarters to Calgary after 124 years in Toronto. Calgary beat out Canadian cities Vancouver and Montreal which ranked thirteenth and fifteenth, respectfully.
 
“Smaller cities with strong growth drivers, like energy, or with attractive lifestyles, are being propelled upwards in the ranking.” said Catherine Marshall, Senior Vice President, Research and Strategy. “While Toronto continues to benefit from its size and diversity, Calgary’s expectations for growth are amplified as its economy is currently focused on high growth industries.”