Chicago (December 4, 2024) – US and Canadian real estate is on the verge of a new cycle in 2025, with interest rates down from peak levels and economic growth concerns fading, but also new risks on the horizon, according to the North America chapter of the ISA Outlook 2025 report published by global real estate investment manager LaSalle Investment Management (“LaSalle”).
The landscape for US and Canadian real estate has shifted since last year’s ISA Outlook 2024, which saw lower transaction volumes due to higher interest rates and challenging macroeconomic conditions. LaSalle sees considerable differences between this upcoming cycle and prior ones across both countries. Specifically, interest rates are expected to remain higher, which will lead to a more moderate pace of value recovery. And while the pace of capital flows to real estate is expected to pick-up in 2025, conditions across real estate sectors and markets will remain uneven.
These differences suggest that investing into the coming real estate cycle will not be a simple story of a “rising tide lifts all boats”; selectivity at the sector, market and sub-market level is likely to add value. LaSalle’s ISA Outlook 2025 follows several main themes that will influence real estate decision-making within the US and Canada, as well as sector by sector analysis of different property types:
Global and North American Property Sector Outlooks
The North America chapter of the ISA forms part of LaSalle’s Global ISA Outlook 2025, which analyzes real estate trends across geographies and sectors, and similarly finds the new cycle extends to global real estate markets.
Richard Kleinman, LaSalle’s Americas Head of Research and Strategy, said: “We are on the cusp of a new real estate cycle both globally and in the Americas specifically. That said, navigating the current environment will require selectivity at the sector, market, and submarket levels. The ISA Outlook 2025 research we’ve released today looks in depth at what is driving trends in North American real estate, and lays out our strategy for the year ahead.”
Chris Langstaff, Head of Research and Strategy for Canada at LaSalle, commented: “Our outlook for Canadian real estate next year resembles many of our global projections, with some important distinctions. Optimism is a bit more contained as economic performance has lagged and there’s been uncertainty around trade policies, but favourable demographics, healthy fundamentals in most sectors and forecasts for improved GDP and job growth in 2025 and 2026 will continue to drive opportunities across markets, including in specialty sectors.”
Brian Klinksiek, Global Head of Research and Strategy at LaSalle, added: “Global real estate sentiment is gradually improving following a long period of negativity and signs are pointing to the beginning of a new real estate cycle. History has shown that investing early in a cycle tends to lead to relatively strong performance. There are still risks on the horizon, however, and investors are advised to focus on diversified strategies that are flexible and broad enough to adapt to a complex and evolving relative value landscape. A comprehensive look at value across a wide range of sectors and markets will be required to build a well-positioned real estate portfolio.”
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About LaSalle Investment Management | Investing Today. For Tomorrow.
LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages US$88.2 billion of assets in private and public real estate equity and debt investments as of Q3 2024. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles, including separate accounts, open- and closed-end funds, public securities and entity-level investments.
For more information, please visit www.lasalle.com, and LinkedIn.
NOTE: This information discussed above is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made to certain qualified investors by means of a private placement memorandum or applicable offering document and in accordance with applicable laws and regulations. Past performance is not indicative of future results, nor should any statements herein be construed as a prediction or guarantee of future results.
Chicago (November 18, 2024) – LaSalle Investment Management (“LaSalle”), the global real estate investment manager, is pleased to announce the appointment of Tara McCann as Head of Americas Investor and Consultant Relations, effective November 4. In this role, Tara leads LaSalle’s efforts to strengthen relationships with existing institutional investors, enhance consultant relationships and expand the firm’s network across the Americas.
Tara’s appointment reinforces LaSalle’s commitment to continually strengthen its investor relations capabilities as well as to diversify product offerings and broaden distribution channels in the Americas to drive long-term growth. Based in New York, she reports to Samer Honein, Global Head of Investor Relations. Tara will assume the responsibilities of Adam Caskey, Head of Americas Investor Relations, who is set to retire in December this year.
Tara is a real estate industry veteran with over 25 years of experience in senior roles across investor relations, product development, acquisitions, and investment banking. She joins LaSalle from Rockwood, where she served as Head of Capital and Client Strategies, while also spearheading the firm’s ESG initiatives. Prior to that, Tara was a Managing Director with USAA Real Estate Company, serving as the product specialist for opportunistic and credit strategies. She has also held senior roles at H/2 Capital Partners, Ranieri Real Estate Partners and the Deutsche Bank Securities’ Real Estate Investment Banking Group.
Tara received a Master of Business Administration in Finance from Columbia Business School and a Bachelor of Arts in Economics and Urban Studies from Brown University.
Samer Honein, Global Head of Investor Relations at LaSalle, added: “Tara’s experience in investor relations, product development and strategic insights across the real estate industry make her an ideal addition to the team. We look forward to her leadership of our Americas investor relations efforts, reinforcing our commitment to deliver world-class partnerships to our clients.”
Brad Gries, Head of Americas at LaSalle, commented: “Tara’s appointment is a key step in our strategy to enhance our coverage and product offerings in the Americas. Her deep industry knowledge and established relationships will be instrumental as we continue to deliver innovative solutions to meet the evolving needs of our investors in the region.”
Tara McCann, Head of Americas Investor and Consultant Relations at LaSalle said: “I am excited to join a firm with LaSalle’s values and global platform at this exciting time of growth. I look forward to expanding our relationships and continuing LaSalle’s legacy of delivering innovative solutions that meet the evolving needs in real estate investment of our partners.”
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About LaSalle Investment Management | Investing Today. For Tomorrow.
LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages US$84.8 billion of assets in private and public real estate equity and debt investments as of Q2 2024. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles, including separate accounts, open- and closed-end funds, public securities and entity-level investments.
For more information, please visit www.lasalle.com, and LinkedIn.
Toronto (October 22, 2024) – LaSalle Canada Property Fund (“LCPF” or “the fund”), LaSalle Investment Management (“LaSalle”)’s core real estate fund in Canada, has achieved the highest rating of five stars from the 2024 Global Real Estate Sustainability Benchmark (“GRESB”), an industry-recognized global Environmental, Social and Governance (ESG) benchmark for asset managers. Additionally, LCPF has been named the Real Estate Sector Leader for all Americas Private Diversified Funds, ranking first out of 112 entities in this category.
LaSalle Canada Property Fund scored 90/100 on the annual assessment, earning first place within its 17-member sector peer group. This achievement highlights the fund’s market-leading sustainability initiatives that continue to play a key role in the active asset management of the LCPF portfolio. In addition to the recognition for LCPF, seven other LaSalle funds and separate accounts domiciled across Europe, North America, and the Asia-Pacific regions were awarded a 5-star rating, with five additional LaSalle funds achieving a four-star rating.
Elena Alschuler, LaSalle Head of Sustainability, Americas, said: “This latest recognition as a GRESB sector leader reflects LaSalle’s ongoing dedication to meeting our clients’ sustainability goals, while enhancing the market value of our properties. Since its inception in 2017, LCPF has viewed sustainability as a key component of a high-quality property. This investment view informs decisions about both acquisitions and capital improvements, resulting in a portfolio that is in a leading position amongst peers.”
Sam Barbieri, LaSalle Managing Director of Development and Fund Management, added: “LCPF stands as a strong example of our commitment to both sustainability and investment excellence. This year’s GRESB score and our position as the Real Estate Sector Leader for all Americas Private Diversified Funds are a testament to the team’s hard work over the past year developing and embracing new strategies that align with the fund’s philosophy of ensuring ESG goals are met, while simultaneously generating income for clients.”
The LCPF portfolio exemplifies sustainability across its diverse properties, with several standout examples highlighting this commitment. Montréal’s Maison Manuvie boasts net zero carbon performance, Ottawa’s 275 Slater is undergoing sustainability upgrades targeting LEED Certification, and the Tricont logistics properties in Whitby were designed to meet the prestigious LEED® Silver certifications through the Canada Green Building Council. These assets, among others in the portfolio, demonstrate LCPF’s broad commitment to environmental responsibility across various property types and locations.
LCPF’s portfolio totals nearly 9.4 million square feet across Vancouver, Calgary, Edmonton, Toronto, Ottawa and Montreal – the key markets in Canada’s investable real estate universe. The portfolio includes industrial, multifamily, office, retail and mixed-use properties, along with select development projects in these sectors.
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About LaSalle Canada Property Fund (LCPF)
LCPF is an open-ended fund targeting core properties in major markets across Canada. The fund is targeting commitments from Canadian and global institutional investors seeking access to the Canadian real estate market through a diversified, income-oriented vehicle. Launched in 2017, the fund aims to provide investors with immediate exposure to a diverse and mature portfolio comprised of office, industrial, mixed-use, retail and multifamily assets. Through its near-term pipeline of potential future investments, the fund will seek to take advantage of mispriced assets as it continues to grow.
About LaSalle Investment Management | Investing Today. For Tomorrow
LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages US$84.8 billion of assets in private and public real estate equity and debt investments as of Q2 2024. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles, including separate accounts, open- and closed-end funds, public securities and entity-level investments.
For more information, please visit www.lasalle.com, and LinkedIn.
About GRESB
GRESB is an industry-driven organization transforming the way capital markets assess the environmental, social and governance (ESG) performance of real asset investments. More than 900 property companies and funds, jointly representing more than USD 3.6 trillion in assets under management, participated in the 2018 GRESB Real Estate Assessment. The Infrastructure Assessment covered 75 funds and 280 assets, and 25 portfolios completed the Debt Assessment. GRESB data and analytical tools are used by more than 75 institutional and retail investors, including pension funds and insurance companies, collectively representing over USD 18 trillion in institutional capital, to engage with investment managers to enhance and protect shareholder value. Greater transparency on ESG issues has become the norm, with GRESB widely recognized as the global ESG benchmark for real assets. For more information about GRESB and its ESG benchmarking and reporting for real estate, please visit https://gresb.com/gresb-real-estate-assessment/.
NOTE: This information discussed above is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made to certain qualified investors by means of a private placement memorandum or applicable offering document and in accordance with applicable laws and regulations. Past performance is not indicative of future results, nor should any statements herein be construed as a prediction or guarantee of future results.
Chicago (July 9, 2024) – LaSalle Investment Management (“LaSalle”), the global real estate investment manager, today announced that it has promoted Kyle Dupree to Head of Asset Management and Pat Pelling to Head of Transactions. Both are long-time LaSalle veterans who will report to Brad Gries, Head of Americas, in their new roles.
As Head of Asset Management, Kyle brings a wealth of experience executing asset-level strategies, honed through his years of experience on the asset management team. Having joined the firm in 2010, Kyle has demonstrated exceptional growth and leadership, and will be responsible for leading asset management initiatives and processes across various property sectors. He also provides strategic leadership for digital enterprise applications and spearheads the valuation process for U.S. private equity. Kyle is based in LaSalle’s San Diego office.
Pat works out of LaSalle’s New York office, and succeeds Brad as Head of Transactions. Pat has an impressive track record of success at the firm, with over 15 years of experience in both asset management and transactions positions. Most recently, Pat has been a key leader with the transactions group – sourcing, underwriting, and executing new investments. He has also served as a thought leader, driving new, strategic investment initiatives, programmatic partnerships and cultivating key relationships.
Brad Gries, Head of Americas at LaSalle Investment Management, commented: “These promotions highlight LaSalle’s continued focus on strategic leadership succession and our desire to foster the growth of talented people within our firm. Both Kyle and Pat are exceptionally good at what they do, and we are proud to welcome them into these leadership roles.”
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About LaSalle Investment Management | Investing Today. For Tomorrow.
LLaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages approximately US $87 billion of assets in private and public real estate equity and debt investments as of Q1 2024. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. For more information please visit www.lasalle.com, and LinkedIn.
NOTE: This information discussed above is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made to certain qualified investors by means of a private placement memorandum or applicable offering document and in accordance with applicable laws and regulations. Past performance is not indicative of future results, nor should any statements herein be construed as a prediction or guarantee of future results.
Chicago (June 3, 2024) – LaSalle Investment Management (“LaSalle”), the global real estate investment manager, today announced that Brad Gries has been named Head of the Americas. Brad, who previously served as Co-Head of the Americas, will retain his position as Chair of the LaSalle Americas Investment Committee, resume his role as Co-Chief Investment Officer for LaSalle Americas and maintain his role as part of the Global Management Committee.
As Head of the Americas, Brad will oversee all personnel, operational, and investment management activities across the region for LaSalle. As Co-Chief Investment Officer, Brad’s focus will be on setting investment strategy and execution for the firm, continue to be an active participant in the firm’s capital raising efforts as well as direct involvement in the formation and execution of joint ventures and large portfolio transactions. Kristy Heuberger, who was formerly Co-Head of the Americas, will be leaving LaSalle this summer to pursue new opportunities.
Brad has had a successful career at LaSalle since joining the firm in 2017 to lead the US Transactions team. In 2019, Brad also took on the role of Co-Chief Investment Officer for the Americas to help direct investment strategy and was appointed Co-Head of the Americas in 2021.
Prior to joining LaSalle, Brad held multiple leadership positions over 16 years at the real estate investment arm of DWS, most recently serving as Managing Director, Real Estate Transactions. In that role, he led the acquisition team responsible for new investment initiatives in the Central and Southeastern United States, including investments in all property types and across the risk spectrum.
Brad Gries, Head of Americas at LaSalle Investment Management, commented: “I am excited to continue leading our highly talented team, building on the great results we have achieved in the Americas. Kristy has been an incredible partner and it has been an honor to have worked closely with her over the past several years. I wish her the best in this next phase of her successful career.”
Mark Gabbay, Global Chief Executive Officer at LaSalle Investment Management, added: “We thank Kristy for her contributions in advancing our Americas platform over the past nine years and wish her the best in her next chapter. We have deep conviction in the Americas team under Brad’s leadership to continue delivering optimal outcomes for our investors and stakeholders and further propel the growth and development of our Americas business.”
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About LaSalle Investment Management | Investing Today. For Tomorrow.
LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages approximately US $87 billion of assets in private and public real estate equity and debt investments as of Q1 2024. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. For more information please visit www.lasalle.com, and LinkedIn.
NOTE: This information discussed above is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made to certain qualified investors by means of a private placement memorandum or applicable offering document and in accordance with applicable laws and regulations. Past performance is not indicative of future results, nor should any statements herein be construed as a prediction or guarantee of future results.
Toronto (May 6, 2024) – LaSalle Investment Management (“LaSalle”), the global real estate investment manager, has appointed Michael Fraidakis as Head of Alternative Investment Strategies and Chief Investment Officer, Canada, strengthening the firm’s senior team in the region. He will lead LaSalle’s existing flagship value-add fund series in Canada and play a primary role developing new investment strategies and associated capital raising.
Michael is an industry veteran with 27 years of multi-functional leadership experience across all real estate asset classes and markets in Canada reflecting over C$20 billion in completed transactions throughout his career. He joins LaSalle from BGO, where he was most recently Managing Director, Head of Canadian Investments, responsible for the development and execution of investment strategies across all clients, funds, markets, and sectors. Michael began his career at BGO as an analyst in 2002, and over the years established himself as the company’s lead underwriter in Canada. Michael led multiple growth initiatives including product and business development as well as growing the firm’s programmatic partnerships. Prior to BGO, Michael held roles in finance at Beutel Goodman Real Estate Group and the Cadillac Fairview Corporation.
As part of this newly created role, Michael will assume the responsibilities of Chris Lawrence, Head of Value-Add Strategies, Canada, who is set to retire in June this year. Michael joined LaSalle on April 15 and reports to John McKinlay, CEO of LaSalle Canada, in the firm’s Toronto office.
John McKinlay, CEO of LaSalle Canada, said: “We are proud to welcome Michael to the firm as we continue to scale our investments across Canada and especially as alternative property classes grow increasingly important to our institutional clients. By leveraging his extensive industry relationships and expanding relationships both domestically and abroad we will further strengthen our position in the market. His deep understanding of Canada’s real estate markets and inveterate experience driving growth initiatives and portfolio strategy is a great enhancement to our team.”
Michael holds a Master of Business Administration in finance and real property development from the Schulich School of Business, and a Bachelor of Administrative Studies (Honours) in accounting and finance from York University.
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About LaSalle Investment Management | Investing Today. For Tomorrow.
LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages over US $89 billion of assets in private and public real estate equity and debt investments as of Q4 2023. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. For more information please visit www.lasalle.com, and LinkedIn.
NOTE: This information discussed above is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made to certain qualified investors by means of a private placement memorandum or applicable offering document and in accordance with applicable laws and regulations. Past performance is not indicative of future results, nor should any statements herein be construed as a prediction or guarantee of future results.
Washington / New York (April 11, 2024) – A new global report from the Urban Land Institute (ULI) and LaSalle Investment Management (LaSalle), a leading real estate investment management firm, offers a new framework to help the real estate industry act on climate risk disclosure data. Across the real estate industry, practitioners understand physical climate risk to assets and portfolios poses a financial risk, but there are still many challenges to enacting on the data being collected and disclosed.
This new framework is the latest tool for real estate investors and other practitioners to evaluate the costs of action and inaction when it comes to investing in resilience. The report, Physical Climate Risks and Underwriting Practices in Assets and Portfolios, is the second in a series by ULI and LaSalle. Building on the first report that outlined how to source and interpret reliable climate risk data, the second provides a market overview, adaptable framework, and recommendations based on emerging best practices for incorporating physical climate risk in the underwriting process.
“Physical climate risk data collection and disclosure is the first step the real estate industry can take to further invest in and build resilient infrastructure,” said Lindsay Brugger, head of Urban Resilience at ULI. “Data drives action and doing nothing incurs deeper costs — from higher insurance premiums to asset repair or replacement. Focusing on the underwriting process, the framework offers investment managers a methodology for developing risk-adjusted returns so deals can be adapted in alignment with a firm’s fund or portfolio objectives.”
“Of the $850 billion of commercial real estate tracked by NPI, LaSalle estimates $285 billion, or 34% is situated in high and medium-high climate risk zones in the US,” said Julie Manning, Global Head of Climate and Carbon at LaSalle Investment Management. “This report helps provide guidance that investment managers can follow to factor the climate risk data they have available to them and improve outcomes at the asset and portfolio level. We want to lead the conversation across the industry and collaborating with ULI is a great conduit to amplify the discussion that will ultimately benefit investors of all kinds with more resilient real estate portfolios.”
The framework is broken down into three steps for decision making based on individual asset risks, local market risks, and ongoing risk mitigation efforts:
1. Evaluate the level of exposure to physical climate risk and financial implications;
2. Identify hazard mitigation strategies and estimate associated costs; and
3. Determine risk-adjusted return and whether or not that return meets firm objectives
The redevelopment will also look to meet future tenant requirements and evolving work trends with high-quality amenities to promote in-person interaction and facilitate a hybrid working, including an auditorium, business centre, bars and restaurants, event spaces and a media broadcast studio.
As climate impacts continue to influence real estate markets around the world, improving understanding of physical climate risk and adjusting pricing to reflect risk are growing imperatives. Firms can better navigate the complexities of physical climate risk and capitalize on emerging opportunities by leveraging this new report’s insights and guidance. Prioritizing knowledge diffusion and empowering informed decision-making processes is key to effectively managing and mitigating incoming climate risks in the evolving real estate industry, whether at a community or individual building scale.
The full report and downloadable framework can be found on ULI’s Knowledge Finder.
REPORTERS AND EDITORS: For more information, please contact:
ULI
LaSalle
Drew McNeill
About the Urban Land Institute
The Urban Land Institute is a non-profit education and research institute supported by its members. Its mission is to shape the future of the built environment for transformative impact in communities worldwide. Established in 1936, the institute has more than 48,000 members worldwide representing all aspects of land use and development disciplines. For more information on ULI, please visit uli.org, or follow us on Twitter, Facebook, LinkedIn, and Instagram.
About LaSalle Investment Management
LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages over US $89 billion of assets in private and public real estate equity and debt investments as of Q4 2023. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. For more information please visit www.lasalle.com, and LinkedIn.
MONTREAL (December 20, 2023) – Ivanhoé Cambridge (“IC”) announced today that it has syndicated a 49% stake of Vaughan Mills shopping center to LaSalle Investment Management (“LaSalle”), as part of a syndication process. The 49% share represents one of the largest retail transactions Ivanhoé Cambridge has made over the past few years.
Per the syndication terms, Ivanhoé Cambridge and LaSalle will serve as co-owners, as IC will continue to act as asset manager in executing the property business plan.
“We are thrilled to share the news of this enhanced partnership with LaSalle, a sophisticated player who will contribute to the continued success of this property,” said Annie Houle, Head of Canada at Ivanhoé Cambridge. “Vaughan Mills is a prominent shopping center that has stood out over the past twenty years, highlighting the strength of retail.”
“We are pleased to continue to build a successful relationship with Ivanhoé Cambridge, a valued best-in-class global partner and real estate leader,” said Stephen Robertson, Head of Canada Transactions at LaSalle.
Stuart Sziklas, Senior Managing Director and Portfolio Manager at LaSalle, added, “Winning retail centers have remained quite resilient through cycles, and Vaughan Mills’ leasing and occupancy track record highlights its premier location and status in the market.”
Located in Vaughan, Ontario, Vaughan Mills is visited by over 13 million people annually. The shopping center stands out thanks to its unique positioning, a distinctive 1.7 km, 1 level “race track-style” configuration, and its retail offering of both regular and outlet brands, with a strong focus on entertainment and leisure.
Vaughan Mills is 97% leased, with a significant mix of international and national brands. The shopping center underwent an expansion in 2015 and is certified BOMA Best Platinum, the highest level for this program supporting smart and sustainable building operations worldwide.
CBRE Limited acted as real estate advisors and RBC Capital Markets Realty Inc. acted as financial advisors to Ivanhoé Cambridge.
About Ivanhoé Cambridge
Ivanhoé Cambridge develops and invests in high-quality real estate properties, projects and companies that are shaping the urban fabric in dynamic cities around the world. It does so responsibly, with a view to generate long-term performance. Ivanhoé Cambridge is committed to creating living spaces that foster the well-being of people and communities, while reducing its environmental footprint.
Ivanhoé Cambridge invests internationally alongside strategic partners and major real estate funds that are leaders in their markets. Through subsidiaries and partnerships, the company holds interests in 1,500 buildings, primarily in the industrial and logistics, office, residential and retail sectors. Ivanhoé Cambridge held C$77 billion in real estate assets as of December 31, 2022, and is a real estate subsidiary of CDPQ (cdpq.com), a global investment group. For more information: ivanhoecambridge.com.
About LaSalle Investment Management | Investing Today. For Tomorrow.
LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages over $89 billion of assets in private and public real estate property and debt investments as of Q3 2023. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. For more information please visit http://www.lasalle.com, and LinkedIn.
CHICAGO (Dec. 5, 2023) – The US and Canadian real estate markets continue to see subdued transaction volume and a wait-and-see approach from investors amid their respective central banks’ campaigns to snuff out inflation through interest rate hikes. LaSalle’s Insights, Strategy and Analysis (ISA) Outlook 2024 makes the case that secular trends, not cyclical trends, may hold answers as to where winning property types will land in 2024, with the early half of the year looking similar to 2023 and the potential for a rebound later in the year.
The report will be released in regional chapters throughout November and December, and can be viewed at: www.lasalle.com/Outlook2024.
The ISA Outlook 2024 looks at five key themes from a global and regional level:
On a broad basis in the Americas, the report observes a potential recovery later in 2024, a continued focus on interest rates and their impact and the potential for supply weighing on real estate fundamentals.
Brian Klinksiek, Global Head of Research and Strategy at LaSalle, said: “Significant unknowns remain in the global real estate market as we head into 2024, including interest rates, geopolitical tensions, and whether major economies may tip into recession. While it’s very difficult to time markets, data on previous down cycles suggest that it’s often during unsettled periods that savvy investors can find strong value in real estate, making this a potentially strong vintage for investment.”
Select ISA Outlook 2024 findings for North America include:
Rich Kleinman, Co-CIO and Head of Research & Strategy for the Americas at LaSalle, said, “Looking at real estate investment solely through the lens of interest rates means you’re missing the bigger picture as we believe sectors and markets will adjust to rates at varying speeds. Investors with dry powder, flexibility and who can identify price gaps are likely to come out as winners in this transitional market.”
Chris Langstaff, Head of Research & Strategy for Canada at LaSalle, said, “Looking to 2024, we expect that in the midst of a continued softening of the Canadian economy in the near term, the strong migration trends will support long-term growth of the Canadian economy. This will particularly benefit the apartment and industrial sectors when economic growth resumes.”
About LaSalle Investment Management | Investing Today. For Tomorrow.
LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages approximately $89 billion of assets in private and public real estate property and debt investments as of Q3 2023. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. The firm sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. For more information, please visit www.lasalle.com, and LinkedIn.
Forward looking statement
The information discussed above is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made to certain qualified investors by means of a private placement memorandum or applicable offering document and in accordance with applicable laws and regulations. Past performance is not indicative of future results, nor should any statements herein be construed as a prediction or guarantee of future results.
TORONTO (Feb. 14, 2023) – LaSalle Investment Management (“LaSalle”) is celebrating five years since the launch of its flagship core real estate fund in Canada, the LaSalle Canada Property Fund (“LCPF” or “the fund”). Since its launch in 2017, the fund’s investment objective has been to outperform the MSCI Canada Property Fund Index (“the index”) by 100 basis points on a gross, five-year rolling basis. It has achieved that goal over the past five years. Additionally, the fund has maintained top quartile performance against the index over 1-, 3- and 5-year periods on a gross basis as of December 31, 2022. LCPF has also grown its gross asset value by 4.5 times since inception to more than C$2.3 billion across 33 investments with interests in 53 properties.
John McKinlay, CEO of LaSalle Canada, said: “We’re proud to have reached the five-year threshold for LaSalle Canada Property Fund. While LaSalle has a rich history of operating in Canada since 2000, this is a critical milestone for LCPF, and a testament to the staying power of the fund and its goal of providing investors income through access to Canada’s highest quality core real estate in the country’s top markets. Canada is an outstanding destination for capital looking to take advantage of solid real estate fundamentals, including strong immigration, job growth, and tenant demand for core product across key sectors. Thank you to our investors for their continued commitment.”
Sam Barbieri, LaSalle Managing Director of Development and Fund Management, added: “Through patience and a dedicated strategy of acquiring and developing high quality assets across Canada’s six major metros, we’ve been able to construct a fundamentally strong portfolio for LCPF that continues to prove its resilience. On the sustainability front, we’re proud to have achieved two four-star and two five-star GRESB ratings, having improved the fund’s score each year. LCPF also ranks well in the index in terms of physical climate risk, having one of the lowest value at risk, in accordance with annual physical climate risk assessments conducted by the fund.”
LCPF’s portfolio totals nearly 9.5 million square feet across Vancouver, Calgary, Edmonton, Toronto, Ottawa and Montreal – the key markets in Canada’s investible real estate universe. The portfolio includes industrial, multifamily, office, retail and mixed-use properties, along with select development projects in these sectors. Among its marquee properties are:
Sustainability initiatives continue to be a key driver in the active asset management of the portfolio. More than 85% of the properties in the portfolio have received a sustainability certification, including 7 that hold LEED certifications, 6 BOMA Best certifications and 9 WELL Health-Safety certifications. LCPF has also submitted to the Global Real Estate Sustainability Benchmark (GRESB) for all five years, earning back-to-back 5-star ratings in 2020 and 2021.
Amy Barsich, LaSalle Managing Director and LCPF CFO, said: “While the market has evolved since LCPF launched five years ago, LCPF’s thesis and principles continue to hold up and produce income for our investors. We look forward to continuing to serve our investors for years to come.”
About LaSalle in Canada
On an aggregate basis, LaSalle has executed more than C$8 billion in Canadian real estate since 2000, providing it with an in-depth understanding of the market. The formation of LCPF expanded LaSalle’s existing Canadian real estate product suite and investment vehicles, which include a series of closed-end commingled funds as well as separate accounts.
About LaSalle Canada Property Fund (LCPF)
LCPF is an open-ended fund targeting core properties in major markets across Canada. The fund is targeting commitments from Canadian and global institutional investors seeking access to the Canadian real estate market through a diversified, income-oriented vehicle. Launched in 2017, the fund aims to provide investors with immediate exposure to a diverse and mature portfolio comprised of office, industrial, mixed-use, retail and multifamily assets. Through its near-term pipeline of potential future investments, the fund will seek to take advantage of mispriced assets as it continues to grow.
About LaSalle Investment Management | Investing Today. For Tomorrow
LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages approximately $79 billion of assets in private and public real estate property and debt investments as of Q4 2022. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. For more information, please visit us on LinkedIn.
Forward looking statement
The information discussed above is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made to certain qualified investors by means of a private placement memorandum or applicable offering document and in accordance with applicable laws and regulations. Past performance is not indicative of future results, nor should any statements herein be construed as a prediction or guarantee of future results.
LaSalle Investment Management (“LaSalle”) announced its fifth Canadian value-add real estate fund in Canada, LaSalle BVK Canada Advantage (“BVK Advantage” or “the fund”), expanded its portfolio through the acquisitions of a mid-bay industrial portfolio and multifamily property. Both the industrial portfolio and the multifamily property are located in Toronto.
The multifamily property and industrial portfolio acquisitions are the first capital deployments for BVK Advantage, respectively, after the fund closed in December of 2021 with a total capital raise of C$306 million. Both acquisitions speak to the compelling fundamentals of the Toronto market and the market’s attractive value-add opportunities.
John McKinlay, CEO of LaSalle Canada, said: “We view Toronto as a premier real estate market not just in North America, but globally. Its continued demographic tailwinds, economic strength and land-constrained nature offer opportunities across the risk spectrum that domestic and foreign capital can capitalize on. Even amid an increasing rate environment, there remains an opportunity to find yield in a well-executed value-add acquisition as long as your team has the vision and knowledge to execute at a high level, which I believe our team possesses.”
Added Chris Lawrence, Sr. Managing Director and Head, Value-Add Strategies at LaSalle Canada: “These acquisitions provide a strong foundation for BVK Advantage’s portfolio and highlight our conviction in the multifamily and industrial sectors. We’ve found success in previous funds by identifying well-located properties that can respond to our active management approach, and believe we have done so again here. I’m proud of our team for their creative approach to sourcing and executing both transactions.”
The Toronto Airport Mid-Bay Industrial Portfolio consists of eight properties totaling nearly 400,000 square feet, and is located in Mississauga and Brampton, prime Greater Toronto Area (“GTA”) industrial submarkets. The portfolio is fully leased, with a short weighted average lease term of just over 2 and a half years, and significant upside due to below market in-place rents. The GTA is one of North America’s largest industrial markets at 800 million square feet, and has seen rents grow at a three-year compound annual growth rate of 20% amid a surge in industrial demand driven by e-commerce.
Mike Cornelissen, LaSalle Managing Director of Acquisitions, added: “e-Commerce demand and the potential runway for further expansion in Canada has put a premium on industrial properties. We feel that the land constraints of Toronto, specifically the surrounding Greenbelt, combined with the larger product coming online, positions infill mid-bay product to be a destination for tenants looking for prime distribution facilities. All of this comes at a fraction of replacement cost.”
The multifamily property, 75 Eastdale, includes a 15-story, 253-unit high rise apartment building along with 16 two-story townhomes in the desirable Danforth Village in Toronto’s East End. The property’s unit mix includes studios and 1-4 bedroom apartments and townhouses, and is 96 percent leased. The Toronto market benefits from exceptional population growth, and is projected to be the fastest growing market in Canada totaling 10 million people by 2046, according to LaSalle Research & Strategy. Toronto has averaged under 1.5% apartment vacancy for the last 10 years as demand has outpaced supply. In 75 Eastdale’s immediate area, there is limited apartment supply, and excellent proximity to public transit and employment, which should continue to drive strong leasing trends.
Stephen Robertson, Head of Acquisitions for LaSalle Canada, said: “75 Eastdale is an excellent way for BVK Advantage to enter the market as it is well-located with a strong history of tenant demand. We feel there is excellent upside to this property through select unit and common area renovations that will continue to make this an attractive rental option for those looking for a vibrant neighborhood with easy access to surrounding employment and downtown Toronto.”
About LaSalle in Canada
On an aggregate basis, LaSalle has executed more than C$7 billion in Canadian real estate since 2000, providing it with an in-depth understanding of the market. The formation of LCPF expanded LaSalle’s existing Canadian real estate product suite and investment vehicles, which include a series of closed-end commingled funds as well as separate accounts.
About LaSalle Investment Management
LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, we manage approximately $82 billion of assets in private equity, debt and public real estate investments as of Q2 2022. The firm sponsors a complete range of investment vehicles including open- and closed-end funds, separate accounts and indirect investments. Our diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. For more information please visit www.lasalle.com and LinkedIn.
NOTE: This information discussed above is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made to certain qualified investors by means of a private placement memorandum or applicable offering document and in accordance with applicable laws and regulations. Past performance is not indicative of future results, nor should any statements herein be construed as a prediction or guarantee of future results.
Heightened geopolitical risk, persistent high inflation, and a possible recession will place European real estate under acute pressure in H2 2022. However, the asset class is expected to continue to provide longer-term stability for core investors via carefully curated portfolios, as well as offering new opportunity for investors seeking value-add returns – according to the mid-year 2022 edition of the Investment Strategy Annual (“ISA”), the report published by global real estate investment manager LaSalle Investment Management (“LaSalle”).
Europe is facing a macroeconomic environment rendered fragile by supply chain issues, a hot war on the region’s periphery and a squeeze on consumers’ disposable incomes. As a result, LaSalle expects real estate investors to adopt a much more cautious approach in the second half of 2022. However, while inflationary pressures have surged, and interest rates have increased earlier and more quickly than expected, real estate assets can act as a hedge against inflation in cases where landlords have pricing power. Fundamentally, this will manifest for investors with the best assets in the right locations, where supply-demand imbalances underpin rental growth.
Furthermore, in an uncertain environment, investors seeking higher returns can expect to benefit from dislocation and opportunities to repurpose assets. Off-market or value-add opportunities could potentially offset the effect of rising operating expenses, construction costs and interest rates, either through building-specific renovation or repositioning to achieve occupancy improvement or rental uplift.
Long-term resilience will be underpinned by careful stock selection. Although European real estate markets have been impacted by global headwinds, pockets of opportunity persist for investors across each sector.
Retail rebound postponed
In retail, the post-Covid recovery has been shaken by the impact of inflation on consumer discretionary spending power. Bricks-and-mortar retail warehouses have, however, remained resilient due to the non-discretionary nature of underlying demand for grocery anchors and their convenience offer. But fundamental challenges for European shopping centres and high-street retail is expected to persist, despite destination shopping continuing to remain an integral part of the retail experience in the long term. We remain optimistic on the outlook for outlet centres, which are set to benefit from increasing consumer frugality.
Office sector ‘trifurcation’
As with retail, the office sector is experiencing occupier and investor needs varying greatly by the quality of asset and micro location. Experientially rich buildings in prime locations that meet sustainability standards and benefit from high-quality amenities will continue to attract demand. In addition, with the pathway to Net Zero Carbon in mind, the age and quality of existing stock in European markets presents an opportunity to create the offices of the future, particularly through refurbishment. However, there is a growing range of older stock which is likely to be stranded and should be sold at – or at times even below – current valuation before liquidity dries up.
Logistics demand story remains intact
Logistics has not been immune to recent market shocks and the ongoing cost-of-living crisis. A slowdown in take-up by major occupiers marks a change from many years of continued expansion. However, LaSalle believes that the sector remains in a robust position to grow in the coming months. European logistics properties recorded the highest demand for new space ever in H1 2022, driven by continuous e-commerce expansion, as well as just-in-case inventories and the nearshoring of some manufacturing activity. As a result, vacancy rates are at historical lows, and we remain confident of future prospects for European logistics rental growth.
Living strategies’ prospects at risk of divergence
The living sectors remain underpinneD by strong demand drivers including robust household formation, growth in key cities, an ageing population, increasing mobility and a structural undersupply across Europe. However, potential home buyers may tilt toward renting, owing to the rising cost of debt. For the more niche living sub-sectors, such as student housing and senior housing, investors will need to be ahead of the curve to take advantage of attractive pricing.
Finding value across the yield spectrum
With the European landscape evolving quickly, assessing the prospect for various sectors requires consideration of assets’ pricing yield levels and income growth potential.
LaSalle’s framework finds that for low-yield sectors with excellent fundamentals, like logistics, prime low-carbon offices in key cities and unregulated residential, valuations will hinge on the potential for and relative magnitude of future rental growth and an upward shift in yields. In low-yielding sectors where inflation cannot be offset by rental growth, caution must be exercised until markets stabilise.
Although higher-yielding sectors with challenged fundamentals are intuitively those in which value may be identifiable, recent concerns around economic growth have made their impact felt. The nascent retail recovery, for instance, is at risk from inflationary pressure on real incomes, while capex-intensive strategies to renovate buildings are affected by rising construction costs. Meanwhile, sectors with relatively higher yields and stronger net operating income growth potential – namely alternative living sectors, such as student accommodation or senior living – continue to remain attractive.
Brian Klinksiek, Head of European Research and Global Portfolio Strategies at LaSalle, said: “The past six months have seen macroeconomic headwinds and geopolitical risk affect the global economic outlook. European investors should therefore exercise caution in the coming months until market valuations and asset pricing stabilise. But despite this, real estate will remain an anchor as other asset classes struggle, and investors look for predictability. Underpinned by the long-term resilience of the asset class, careful portfolio construction across the key sectors of European real estate can continue to deliver the benefits of diversification, stability and long-term income growth for investors.”
Jacques Gordon, Global Head of Research and Strategy at LaSalle, added: “Real estate generally provided shelter during the waves of volatility that swept through the securities markets in the first half of the year. 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. Many world events simultaneously contributed to this inflection point including: the re-opening of economies after COVID-19, Russia’s invasion of Ukraine, trade wars, and government stimulus spending. Although these pressures were building in 2021, there is no escaping the fact that the financial and commodity markets shifted sharply in the first half of 2022. Our guidance for investors to seek inflation protection in real estate is a focus-theme of our mid-year update.”
About LaSalle Investment Management
LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, we manage approximately $82 billion of assets in private equity, debt and public real estate investments as of Q2 2022. The firm sponsors a complete range of investment vehicles including open- and closed-end funds, separate accounts and indirect investments. Our diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. For more information please visit www.lasalle.com and LinkedIn.
NOTE: This information discussed above is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made to certain qualified investors by means of a private placement memorandum or applicable offering document and in accordance with applicable laws and regulations. Past performance is not indicative of future results, nor should any statements herein be construed as a prediction or guarantee of future results.
Market direction and economic outlooks have shifted since the start of 2022, with elevated inflation, slowing economic growth, and higher interest rates impacting the real estate market. According to LaSalle’s 2022 Mid-Year Investment Strategy Annual (“ISA”), the overall market shifts are causing real estate investors to re-visit earlier strategies as they understand and react to higher inflation, the Fed’s and the Bank of Canada’s rapid interest rate increases to combat it, and global geopolitical and economic upheaval.
LaSalle clients can view the full report at: www.lasalle.com/research-and-insights/isa-2020
In North America, the impacts of inflation and rising rates on real estate are nuanced, and require an understanding of each sector’s fundamentals, which the report explores. Coming into 2022, LaSalle Research & Strategy noted that the pandemic and its ensuing economic ripple effects had accelerated pre-pandemic trends, widening the gap between favored and non-favored property types. The mid-year report shows these trends are continuing as investors gravitate to favored property types with strong underlying fundamentals. Looking ahead, there is uncertainty in the market, but it appears as though the favored property types are well-positioned to withstand a potential economic slowdown.
Jacques Gordon, Global Head of Research and Strategy at LaSalle, said: “Real estate generally provided shelter during the waves of volatility that swept through the securities markets in the first half of the year. 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. Many world events simultaneously contributed to this inflection point including: the re-opening of economies after COVID-19, Russia’s invasion of Ukraine, trade wars, and government stimulus spending. Although these pressures were building in 2021, there is no escaping the fact that the financial and commodity markets shifted sharply in the first half of 2022. Our guidance for investors to seek inflation protection in real estate is a focus-theme of our mid-year update.”
Select 2022 Mid-Year ISA findings for North America include:
Rich Kleinman, Americas Co-CIO and Head of US Research & Strategy at LaSalle, said, “While it remains to be seen how inflation and interest rates will evolve in the second half of the year, it is our view that many property types are well-positioned to support investor goals in the months ahead, and that real estate exposure should play a productive role in investors’ portfolios. Experience in recent downturns is also helping investors and lenders navigate the uncertainty, which should bode well for the industry as a whole.”
Chris Langstaff, Head of Research and Strategy for Canada at LaSalle, said, “Canada is historically a stable market, and it appears that while many of the same headwinds apply, fundamentals remain strong and transactions in many property types are moving forward.”
About LaSalle Investment Management
LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, we manage approximately $82 billion of assets in private equity, debt and public real estate investments as of Q2 2022. The firm sponsors a complete range of investment vehicles including open- and closed-end funds, separate accounts and indirect investments. Our diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. For more information please visit www.lasalle.com and LinkedIn.
NOTE: This information discussed above is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made to certain qualified investors by means of a private placement memorandum or applicable offering document and in accordance with applicable laws and regulations. Past performance is not indicative of future results, nor should any statements herein be construed as a prediction or guarantee of future results.
