Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Chicago, London, Singapore (December 03, 2024) – LaSalle Investment Management (“LaSalle”), the global real estate investment manager, today announces its updated scores from the 2024 ‘Principles for Responsible Investment’ (“PRI”) Assessment Report, the world’s leading proponent of responsible investment.
LaSalle earned four stars across the assessment categories applicable to LaSalle, pertaining to Policy Governance and Strategy, Direct – Listed Equity – Active Fundamental, Confidence Building Measures, and Direct Real Estate, as well as rated at or above the peer median in three of the four categories. The results show improvement over last year’s assessment, in which LaSalle secured four stars in three categories.
LaSalle’s 2024 PRI Assessment Report results include:
- Policy Governance and Strategy: 4 stars
- Direct – Listed equity – Active fundamental: 4 stars
- Confidence Building Measures: 4 stars
- Direct – Real Estate: 4 stars
Julie Manning, Global Head of Climate and Carbon at LaSalle, commented: “These latest PRI results underscore LaSalle’s deep commitment to advancing the sustainability priorities of our clients in ways that drive investment performance. We will continue our focus on incorporating sustainability efforts across our strategies over the next year as we build on our industry-leading position and trusted partnerships with our clients.”
ENDS
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 $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.
About the PRI
The PRI is the world’s leading proponent of responsible investment. It works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole. The PRI encourages investors to use responsible investment to enhance returns and better manage risks, but does not operate for its own profit; it engages with global policymakers but is not associated with any government; it is supported by, but not part of, the United Nations. For more information about UN PRI and its ESG benchmarking and reporting for real estate, please visit https://www.unpri.org/.
Company news
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
This article first appeared in the December 2024/January 2025 edition of PERE.
LaSalle’s Ryu Konishi and Julie Manning spoke to PERE about the growing importance of sustainability as part of investment decision-making and LaSalle’s approach to creating a global real estate net zero carbon pathway strategy.
A 360-degree approach to decarbonization
The importance of sustainability as part of investment decision-making in the real estate space has been on the rise for quite some time. In fact, the various physical risks associated with climate change, and the regulatory imperative of transitioning to net zero, are now so significant that these factors are gradually filtering through in the form of real-world valuation impacts.
For real estate investors, this raises both risks and opportunities. LaSalle Investment Management is one firm that was early to recognize this, having set up a global sustainability committee back in 2008. More recently, it has worked with the Urban Land Institute to develop a decision-making framework for assessing physical climate risk in relation to its real estate investments.
According to Julie Manning, global head of climate and carbon, and Ryu Konishi, fund manager of Lp3F (LaSalle’s global real estate net-zero strategy), this kind of approach to risk analysis – both broad and deep – is essential. So, where should investors start? And what might a determined decarbonization program in real estate look like?
Want to read more?
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.
ENDS
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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
Chicago, London, Singapore (October 21, 2024) – LaSalle Investment Management (“LaSalle”), the global real estate investment manager, today announces its results from the 2024 GRESB assessment, an industry-recognized global Environmental, Social and Governance (ESG) benchmark for asset managers.
Eighteen of the firm’s funds and separate accounts, domiciled across Europe, North America, and the Asia-Pacific region, participated in the 2024 assessment, of which seven achieved a 5-star rating and five achieved a 4-star rating. Six of the firm’s funds ranked in the top three within their sector peer groups, with both LaSalle Canada Property Fund and LaSalle China Logistics Venture earning first place within their respective sector peer groups.
Those LaSalle funds that achieved a 4 or 5-star rating in the 2024 GRESB assessment are listed below:
- LaSalle Asia Opportunity Fund V
- LaSalle Asia Opportunity Fund VI
- LaSalle Asia Venture Trust
- LaSalle Canada Property Fund
- LaSalle China Logistics Venture
- LaSalle Encore+
- LaSalle E-REGI
- LaSalle Japan Property Fund
- LaSalle LOGIPORT REIT
- LaSalle Property Fund
Julie Manning, Global Head of Climate and Carbon, LaSalle commented: “LaSalle is committed to delivering upon our clients’ sustainability goals in ways that also drive investment performance, and these impressive results reflect this effort. As performance drivers, sustainability factors are key to our corporate strategy in addition to being a focus throughout our investment process. As such, we will continue to embed sustainability further into each function across our operations and maintain our position as a leader in the industry.”
ENDS
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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
PropertyEU spoke with LaSalle’s Ryu Konishi and Adam Donohue about the drivers of and challenges to sustainable investments around the world at Expo Real 2024.
Learn more about how LaSalle is building pathways to a more sustainable future below.
This article first appeared in the Fall 2024 edition of NAREIM Dialogues.
LaSalle’s Julie Manning writes about our latest report with ULI that provides an industry-wide framework for commercial real estate to address how physical climate risk data can be used in decision-making and supporting investment performance.
Using data to evaluate physical climate risk
Measuring physical climate risk is of growing importance to institutional real estate managers and their investors, at both the individual property and portfolio levels. Of the $850 billion of commercial real estate assets tracked by NPI, LaSalle estimates $285 billion, or 34%, is situated in high and medium-high climate risk zones in the US.
Increasingly, being able to assess an asset’s risk exposure, and knowing how to price that risk into management strategies, are essential parts of operating a portfolio. While data is key to this assessment, understanding how to leverage the right data is even more important. With so much climate risk data available in the market, how can organizations manage and find data that gives them manageable, impactful and usable insights? And more importantly, what should managers do with these insights?
Want to read more?
Real estate investors have a meaningful opportunity as the world transitions to a more decarbonized economy. In the video below, Sustainability experts from LaSalle, alongside JLL’s Global Head of Sustainability Services discuss this transition, and the actions that LaSalle is taking today.
Real estate investors have a meaningful opportunity as the world transitions to a more decarbonized economy. Energy-related performance and investment returns are becoming increasingly correlated, and we aim to stay ahead of the curve and capitalize on this long-term trend by decarbonizing the built environment as a means of delivering accretive outperformance.
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Dave White, Head of Real Estate Debt Strategies, and Brett Ormrod, Net Zero Carbon Lead for Europe, discuss the current and future state of green lending across Europe.
While lending volumes across the market remain volatile, data shows one continuously increasing metric: the demand for green loans, which is being driven by the ever-growing sustainability requirements from both investors and sponsors.
Dave White and Brett Ormrod discuss the challenges that borrowers and investors are facing, and how we at LaSalle are navigating these dynamics. They discuss how green loans are impacting the European real estate market, what they can mean for investors’ bottom lines, and the overall opportunity not just for green loans, but for greener assets in investors’ portfolios.
Want to read more?
CHICAGO (September 17, 2024) – Elena Alschuler, LaSalle’s Americas Head of Sustainability has been recognized with the Nareit 2024 Sustainable Leadership Award on behalf of JLL Income Property Trust.
Nareit presented the inaugural Sustainability Impact Awards at its REITworks: 2024 Sustainability & Social Responsibility Conference in McLean, VA. The awards recognize REITs for implementing sustainable practices that demonstrate leadership, ingenuity, and environmental impact in the commercial real estate industry.
Elena was recognized for her leadership in sustainability in the built environment, and her collaboration with industry peers to share knowledge and develop best practices. This is exemplified in Elena’s recent role as chair for the CRREM North America Working Group which is working to develop decarbonization pathways to benchmark transition risk.
Nareit Senior Vice President of Environmental Stewardship & Sustainability, Jessica Long said: “We are excited to highlight Elena and JLL Income Property Trust who are raising the bar for advancing sustainability practices in their operations, buildings, communities, and across the broader REIT and commercial real estate industry.”
LaSalle Global Head of Climate and Carbon, Julie Manning said: “This award is a well-deserved recognition of Elena’s exceptional contributions to sustainable real estate practices. Her innovative strategies and tireless efforts have not only elevated LaSalle’s program but are also working to set new benchmarks for the entire industry. Elena’s work exemplifies our commitment to exploring sustainable solutions that can drive investment performance.”
JLL Income Property Trust, President and CEO, Allan Swaringen said: “At JLL Income Property Trust, we believe sustainability initiatives can drive value and mitigate risk. We integrate these sustainability principles in our portfolio construction, acquisitions and asset management activities, resulting in a tailored approach to each property in our portfolio. Elena has been at the forefront of driving these efforts, and this recognition by Nareit is a testament to her commitment.”
ENDS
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 JLL Income Property Trust, Inc. (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX)
JLL Income Property Trust, Inc. (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX), is a daily NAV REIT that owns and manages a diversified portfolio of high quality, income-producing apartment, industrial, grocery-anchored retail, healthcare and office properties located in the United States. JLL Income Property Trust expects to further diversify its real estate portfolio over time, including on a global basis.
About Nareit
Nareit serves as the worldwide representative voice for REITs and publicly traded real estate companies with an interest in U.S. real estate. Nareit’s members are REITs and other real estate companies throughout the world that own, operate, and finance income-producing real estate, as well as those firms and individuals who advise, study, and service those businesses. Nareit’s focus is to broaden and deepen REIT ownership to help a growing set of everyday American investors enjoy the benefits of holding real estate in a well-diversified portfolio, while increasing capital sources that invest in America’s future. Nareit is the exclusive registered trademark of the National Association of Real Estate Investment Trusts, Inc.®, 1875 I St., NW, Suite 500, Washington, DC 20006-5413. Follow us on REIT.com. Copyright© 2024 by Nareit®. All rights reserved.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
A prudent person sees trouble coming and ducks.
A simpleton walks in blindly and is clobbered.
— Proverbs 22:3
King Solomon’s words of wisdom have been passed down to us for 3,000 years. They still resonate, especially in this modern translation,1 even though the “trouble” is no longer invading Assyrians or Babylonians but the type of danger we bring on ourselves through an all-too-human combination of ingenuity, hubris and ignorance.
Watch any movie from the 1930s to the 1960s and you will see actors inhaling tobacco smoke with abandon. We know better now. Like the generational awareness of the harm caused by tobacco products, real estate owners have gradually become aware of the dangers lurking in certain building materials and contaminated soil. Starting in the 1960s, societies have spent fortunes cleaning up “miracle products.” Asbestos, PCBs, dry cleaning solvents, herbicides and lead pipes were all considered state-of-the-art technologies at various points in human history. None of these inventions were designed with the intention of killing people. They all started with a noble purpose – whether suppressing catastrophic fires, insulating transformers, cleaning wool suits or producing a pleasing nicotine buzz that also curbed the appetite. The “externalities” associated with societal damage from the use of these products took decades to discover and billions to eradicate.
Greenhouse gas emissions share a common ancestry with these miracle products. Heating buildings with diesel fuels, running gas lines through city streets, producing electricity with coal-fired plants—these were all logical, economical, and sensible solutions to the problem of bringing energy to homes, businesses and buildings of all types. The industrial revolution accelerated the growth of cities and raised the quality of life for millions of people by dragging them out of rural poverty. As we now know, society’s dependence on fossil fuels creates new problems which must be dealt with.
The recognition that miracle products can carry hidden (or not so hidden) dangers follows a predictable pattern. Here is what the step-by-step process often looks like:
Evidence and awareness. An environmental problem often requires decades of scientific study and mountains of evidence to convince people that a change is necessary. Even as this evidence accumulates, vested interests organize counterattacks to convince society that the problem is non-existent or over-stated. Eventually the harm to human life becomes so obvious that denial becomes a “fringe position.”
Market demand. In many cases, the process of partial “market adjustment” can begin ahead of government action. Voluntary data collection and industry-led reforms start the slow process of change. In the case of greenhouse gases, the marginal contribution of each emitter is so small, and so embedded in society, that government interventions sometimes lag market-led shifts (e.g., the adoption of LED lighting or heat pumps).
Regulatory response. Yet, government interventions are almost always needed to accelerate and complete behavioral change to truly eliminate harm to the environment and to human life created by “externalities.” These regulations and policy responses often get pushback as competing outcomes are debated in the political arena. Economists agree that putting a price on carbon would be the most efficient and effective solution, but a market mechanism for carbon pricing requires government intervention — in the form of a carbon “tax” or to set up an emissions trading scheme.
Benchmarks and best practices. Eventually, the rise of data benchmarks and peer group comparisons begins to shed light on who, where and how successful “treatments” are applied to any environmental problem. Engineering and laboratory science helps inform this stage of the process, as does public health or industry group data. Integration with market investment processes and decisions leads to a focus on reversing years of damage to the environment and compliance with new regulations and guidelines. At this stage, market-driven and regulatory-driven changes start to converge.
Price integration. Feedback loops are established where type 1 errors (false positives) and type 2 errors (false negative—or overlooked problems) are exposed.2 In loosely regulated situations like climate change, the efficient market hypothesis (EMH) takes hold as the change process gets partially or fully priced by consumers and producers. Economists and policy analysts favor the practice of placing a “price” on an externality to compensate society for the harm. In practice, though, compensatory payments to offset environmental damage are often decided through the courts and litigation.
Continued market and regulatory evolution. The enforcement of tighter regulations also follows its own trajectory depending on the governance structure of a particular country or urban jurisdiction and the toxicity of the problem. The discipline of epidemiology, using population data and public health analysis, is especially helpful at this stage of refining the policy solutions.
The Transition from “Data” to “Wisdom”
For the de-carbonization of buildings, various markets and countries are well into Step 3 (Regulatory Response) and Step 4 (Benchmarks and Best Practices). In Europe the “theory of change” is focused more on EU-wide or national policies to promote energy disclosures through top-down regulatory solutions. In the United States, the emphasis is based more on voluntary pledges, market solutions and regulations that are based on specific local jurisdictions. In most developed countries, steps 5 (Price Integration) and 6 (Market and Regulatory Evolution) are underway, but both have a long way to go.
The rise of real estate sustainability benchmarks (like GRESB) has accelerated in recent years. In many cases, they have expanded to include social factors and tenant well-being alongside environmental metrics. The next hurdle, though, is to establish materiality tests that infuse meaning, and determine financial impacts based on the volumes of reporting that the industry has started to produce and disclose.
Reading through ESG reports often reveals the triumph of reporting and public relations over salience or relevance. The conjoint challenges of reducing building emissions alongside improving the well-being of building users and the surrounding communities can be obscured by data denominated in less familiar metrics like tons of CO2 or Kilowatt hours. In time, and with experience, the emphasis will shift to what truly moves the needle on all elements of the “sustainable investing” paradigm—and which metrics give off misleading or meaningless “virtue” signals.
Financial metrics align most closely with the “fiduciary duty” of an investor. Moreover, stakeholders have decades of experience analyzing and interpreting financial data. It will take additional time and effort to convert environmental data into financial terms or to simply raise the consciousness of how to interpret energy and emission data in its own right. (LaSalle’s work on the “Value of Green” synthesizes studies of the evidence linking sustainability metrics and financial outcomes. An update on this work is below.)
In writing Proverbs, King Solomon gathered centuries of wisdom based on experience. In the modern world, we often believe that the steps to wisdom are built on a foundation of knowledge, information, and data. The famous “DIKW” hierarchy has been a mainstay of information sciences since the 1930s. Sustainability wisdom is still in the process of being formulated and likely requires more time to make progress. Fortunately, the foundations of this wisdom are already being put in place—first through data (the modern way to refer to many, many experiences), then information (organized and analyzed data), eventually leading to knowledge (patterns are identified and the “what” and “why” questions are answered) and finally reaching the status of accumulated wisdom (how to respond). This is a path that humans have traveled before. More lives are at stake this time around and the wisdom may not be easily agreed upon by all industries, countries and stakeholders. Nevertheless, the search for sustainability wisdom must continue and time is of the essence.
Revisiting LaSalle’s “Value of Green”
In September 2023, LaSalle published our ISA Focus report What is the value of green? Looking at the evidence linking sustainability and real estate outcomes. The report presents a framework on how sustainable attributes of properties can be viewed as both as drivers and protectors of value, along with showcasing findings from the broader literature. We continue to maintain a Value of Green tracker, monitoring research on this subject as it is produced. Some of the findings that have surfaced since the release of our initial report are worth highlighting:
- In early 2024, CBRE reported in their UK sustainability index that efficient properties outperformed inefficient properties by close to 2% per year in terms of total return, over the course of 2023 across three major property types. The efficiency of buildings was delineated through EPC ratings.
- UBS reported in late 2023 that a green premium of 28% and 19% in price per square foot was in evidence in the New York and London office markets, respectively, when comparing office transactions based on LEED/BREEAM certifications. This premium was also established in cap rates, showing a 36 and 27 bps premium for New York and London respectively.
- MSCI published a report on price premiums for green buildings, and how they have changed over time. Looking at offices in Paris and London, a clear trend emerged from 2019 onwards showing a growing sale-price gap between offices with and without sustainability ratings. In the case of London, the gap was close to non-existent before 2019 and had since grown to 25% as of the latest reported data point in late 2022.
Beyond the direct links between sustainability and historical investment performance in terms of return, rent and value premiums, more signals are emerging as available data on the topic grows, and becomes increasingly forward looking:
- In 2024, JLL published in their “Green Tipping Point“ report on how the supply/demand balance is shifting in favour of sustainable offices across the globe, as tenant demand evolves. JLL projects a 70% unmet demand across 21 global office markets.
Beyond results based on backward-looking data, detailed case studies of investments into sustainable initiatives are being published. The JLL report “Future-Proof Your Investments“ showcased opportunities for sustainable New York offices; another example is CBRE’s report “The impact of on-site rooftop solar on logistics property values.”
Tobias Lindqvist
Strategist, Climate and Carbon Lead, London
Sources:
CBRE (March 2024) UK Sustainability Index Results to Q4 2023. CBRE
P. Torres, G. Bolino, P. Stepan (2024) The Green Tipping Point. JLL
T.Leahy (2022) London and Paris Offices: Green Premium Emerges. MSCI
P. Torres, J. del Alamo (July 2024) Future-proof your investments. JLL
D. Marina, J. Tromp, T. Vezyridis, O. Bruusgaard (July 2023) The impact of on-site rooftop solar PV on logistics property values. CBRE
O. Muir, Y. Chen, T. Metcalf et.al (Dec 2023) Green premium: Study of New York and London Real Estate finds strong evidence for a ‘green premium’. UBS
What can we learn from simulations?
The de-carbonization of buildings is taking place in a complex and ever-changing environment. It is a multi-dimensional problem replete with uncertain outcomes, regulatory change, shifting societal norms and markets, and the politicization of sensitive issues.
At the June 2024 MIT World Real Estate Forum, Professor Roberto Rigobon unveiled a “sustainability simulation” game patterned on his pathbreaking work on social preferences for the European Commission. The technique shows how the traditional economic conceit that we make “resource trade-offs” does not accurately capture how humans make decisions when faced with multi-dimensional choices.
In the simulation, the audience was given nine choices for different retrofit projects for a commercial building. Each choice resulted in simultaneous movement across three metrics that the audience had already established that they cared about — changes in NOI (profitability), CO2 emissions, and tenant satisfaction/well-being. The cost of the projects was amortized into the NOI calculations and the other metrics were also calibrated based on actual data from the US.
The simulation showed that a knowledgeable real estate audience rarely solves just for “pure profits” at the expense of tenant well-being or CO2 emissions. The simulation also mimicked reality—where sometimes profitability moves in synch with reduced CO2 emissions and other times it moves it moves in the opposite direction. The simulation was designed to show how the co-movement depends on the local market and the type of de-carbonization project. Tenant well-being and CO2 emissions could be implicitly linked to revenue when and if participants believe that occupancy, rents and capital raising are all interconnected.
Through their choices, the audience tried to optimize across all three priorities at once — leading to an interesting result that revealed their average willingness to “pay” to reduce a ton of CO2 emissions of about $200 ton. Yet, if asked directly how much they would pay to reduce a ton of greenhouse gas coming from a building, it seems unlikely that many would have volunteered to pay that much. This finding also shows how the language of profitability and returns is much more advanced than the metrics and concepts associated with either decarbonization or tenant satisfaction. And that all these metrics are linked, but not fully integrated in the minds of real estate professionals.
Only a few participants in the game focused only on reducing CO2 (at the expense of decent profits). And just a few focused exclusively on profitability at the expense of tenant satisfaction or CO2 emissions. This seems like a reasonable facsimile of what enlightened investors will do — especially when they know that their actions are being disclosed. As we learn more from these simulations, it is possible that policy makers will be able to refine the mix of incentives and regulations that govern the real estate industry.
Jacques Gordon
Cambridge, Massachusetts
LOOKING AHEAD >
- As we advance through the six stages of market wisdom, sustainable features in real estate move away from purely “virtuous” and toward increasingly meaningful drivers of investment value. As noted in our ”Value of Green” report the challenge for investors is understanding where, when and how sustainability is driving performance, which is highly variable across markets and sectors. Given LaSalle’s global reach, we are well positioned to observe, learn and act to enhance and protect asset values for our clients, and gain and share wisdom in the process.
- Markets are shifting towards wider alignment with a more sustainable future, new data and findings are continuously published. At LaSalle we also focus on the data generated within our walls, linking our own initiatives driving sustainability with their associated investment outcomes, bringing our own data and experience into the DIKW hierarchy.
- Recognizing the importance of meaningful benchmarks to drive decision-making (Stage 4), LaSalle has been leading an industry initiative to develop an improved solution for decarbonization pathways in the US and Canada, which could be adopted by CRREM and others globally. More meaningful decarbonization pathways will help investors properly measure transition risks and set targets, setting the industry up to make real progress in decarbonizing the built environment.
- Evolution over the Six Stages will likely be uneven over time, geography and investor type. This unevenness could provide investors at more advanced stages an advantage over less progressed investors. For instance, an investor who has incorporated a carbon business case into their investment process is at an advantage to appropriately price opportunities. For example, it should help investors identify attractive brown-to-green strategies.
Footnotes
1 The Message, translated from the Hebrew scriptures by Eugene Peterson (1993-2002).
2 These are all part of the learning that occurs with any “treatment hypothesis.” The science of public health provides solid evidence to weigh whether the “treatment” is helping, hurting or having no impact on the eradication of the underlying disease. In real estate, a good example of this is the gradual discovery that with certain types of asbestos, it is more dangerous to remove it than to “encapsulate” it in an existing structure. The science of “decarbonization” is still being established to determine whether, for example, the mass production of lithium batteries does as much harm as the burning of fossil fuels. For real estate and climate change, the “treatment” will likely focus on energy efficiency/ decarbonization interventions that are a combination of government penalties/incentives and voluntary actions. The effectiveness of these treatments will depend on compliance, market response, and how well interventions find acceptance through the political process.
Important Notice and Disclaimer
This publication does not constitute an offer to sell, or the solicitation of an offer to buy, any securities or any interests in any investment products advised by, or the advisory services of, LaSalle Investment Management (together with its global investment advisory affiliates, “LaSalle”). This publication has been prepared without regard to the specific investment objectives, financial situation or particular needs of recipients and under no circumstances is this publication on its own intended to be, or serve as, investment advice. The discussions set forth in this publication are intended for informational purposes only, do not constitute investment advice and are subject to correction, completion and amendment without notice. Further, nothing herein constitutes legal or tax advice. Prior to making any investment, an investor should consult with its own investment, accounting, legal and tax advisers to independently evaluate the risks, consequences and suitability of that investment.
LaSalle has taken reasonable care to ensure that the information contained in this publication is accurate and has been obtained from reliable sources. Any opinions, forecasts, projections or other statements that are made in this publication are forward-looking statements. Although LaSalle believes that the expectations reflected in such forward-looking statements are reasonable, they do involve a number of assumptions, risks and uncertainties. Accordingly, LaSalle does not make any express or implied representation or warranty, and no responsibility is accepted with respect to the adequacy, accuracy, completeness or reasonableness of the facts, opinions, estimates, forecasts, or other information set out in this publication or any further information, written or oral notice, or other document at any time supplied in connection with this publication. LaSalle does not undertake and is under no obligation to update or keep current the information or content contained in this publication for future events. LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication and nothing contained herein shall be relied upon as a promise or guarantee regarding any future events or performance.
By accepting receipt of this publication, the recipient agrees not to distribute, offer or sell this publication or copies of it and agrees not to make use of the publication other than for its own general information purposes.
Copyright © LaSalle Investment Management 2024. All rights reserved. No part of this document may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including without limitation photocopying and recording on magnetic tape, or included in any information store and/or retrieval system without prior written permission of LaSalle Investment Management.
The arrival of artificial intelligence (AI) is a watershed moment for the entire world, and our industry is no different.
AI is already transforming how real estate investment operates, as managers use the technology to streamline operations. Generative AI is being used to automate time-consuming tasks, like investor due diligence, data analysis, and the processing of contractual documents. But this is only the tip of the iceberg of AI’s untapped potential in our industry. Used right, the technology can deliver real value for us and our clients.
At LaSalle, we are constantly adapting to the ever-changing technological landscape. By embracing new opportunities, we can reap the substantial benefits of technological innovations as they transform the world around us, rather than watch them pass us by.
LaSalle’s technology strategy is setting an industry-leading example of how companies can invest in the right technologies, execute the right strategies, and drive the value of new technologies for clients, industry, and people.
What is LaSalle’s technology strategy?
At LaSalle, our technology strategy is driven by IDEAS – Invest, Data, Efficiency, AI and Sales.
The five components of our IDEAS framework are designed to guide our company’s decisions on technological investments to ensure we are deriving maximum benefit in priority areas:
The framework ensures LaSalle’s teams stay ahead; always ready to adopt innovative new capabilities that can transform the way we work.
How does AI fit into LaSalle’s technology strategy?
We have made AI one of the central components of our IDEAS framework.
As an entity of JLL, LaSalle has access to JLL GPT – the world’s first large language model built by and for the commercial real estate industry. This is a competitive advantage that we leverage to stay ahead. JLL GPT uses JLL’s own extensive commercial real estate data, and external data sources, employing AI to expedite and simplify workflows. JLL GPT has allowed LaSalle teams across the business to drive better working processes internally, enhance efficiency, and ultimately deliver results to our clients.
We spoke to LaSalle teams to find out how they are embracing AI to support their everyday work.
Using JLL GPT to unlock resources
Nicole Creguer, Associate Vice President of Operations, has been guiding the US Asset Management team on using JLL GPT to free up time for more strategic thinking, by taking on manual and administrative tasks.
Creguer is part of the Americas Generative AI Innovation Forum at LaSalle, a group which brings together representatives from LaSalle’s US teams to discuss and drive the latest AI solutions.
Creguer has brought many practical use cases back to her team, including using JLL GPT to analyze meeting transcripts, summarize notes, and finesse communications, ensuring the top-quality output of work.
“JLL GPT saves us huge time on administrative tasks, so we can focus on creating better analysis and adding more strategic value in our work,” Creguer explained.
Using JLL GPT for underwriting models
Matthew Sweiss, Associate Vice President, and Peter Passalino, Associate, are using JLL GPT to drive efficiency within LaSalle’s US Transactions team by streamlining the handling of large amounts of underwriting data.
“We were looking to use JLL GPT to build functionality into our portfolio underwriting models via Excel macros,” said Sweiss. “We wanted to enhance our ability and efficiency in underwriting very large commercial portfolio transactions – the goal being to create a seamless transition between our reporting software and underwriting Excel models.”
Sweiss and Passalino used JLL GPT to develop a macro, test it, and provide feedback to the AI tool. With the feedback inputted, JLL GPT was able to enhance the macro formula, until an ideal solution was provided.
“You would think it might take a while to develop a solution, but the process of inputting the original request, iterating with GPT on it, going through trial-and-error, and landing on a final version, took about a day,” explained Passalino.
“We’ve happily adopted this new solution, and we hope other teams use this to replicate the process as needed going forward,” says Sweiss.
Across the global business, LaSalle is following this example and embracing AI and JLL GPT to simplify work, drive efficiency, and excel productivity. JLL GPT holds immense potential to drive efficiency and value, fostering a commitment from LaSalle to push the boundaries of exploration, through IDEAS.
How does AI fit into LaSalle’s investments?
The IDEAS framework is intended to guide LaSalle’s internal technology strategy. But it is ultimately a reflection of the appetite for embracing innovation running through LaSalle.
This is an appetite that we bring not only to improving our internal business processes, but also to our external investment decisions.
At LaSalle, we are always considering opportunities to partner with others on pioneering solutions to the greatest challenges the real estate industry is facing today.
In partnership with JLL Property & Asset Management, LaSalle selected HANK to run a pilot scheme to test the use of AI powered technology in one of LaSalle’s client offices at 240 Blackfriars, London in 2022.
HANK integrates with the existing building management systems to monitor and ‘learn’ how the existing heating, ventilation and air conditioning (HVAC) system operates. Using AI, energy models and other data inputs, HANK makes real-time micro-adjustments to optimise the operation of the HVAC equipment continuously.
“Using HANK has resulted in efficiencies across the board for 240 Blackfriars, including energy savings, cost savings, reduced carbon, and a positive working environment for tenants. This is an initiative born out of LaSalle’s openness to leverage new technologies. I look forward to exploring more ways for us to use innovation to deliver tangible benefits for our tenants and commercial clients.” – Brett Ormrod, Net Zero Carbon Lead, Europe
It might not yet be clear how transformational the arrival of AI will be for the real estate industry, but we can be certain it will be significant.
There is no doubt vast untapped potential for AI in our industry. LaSalle’s IDEAS framework is a gold-standard example of how real estate investment managers can invest in the right technologies and execute the right strategies to see the most benefit from technological innovations, like AI.
LaSalle has taken reasonable care to ensure that the information contained in this publication is accurate and has been obtained from reliable sources. Any opinions, forecasts, projections or other statements that are made in this publication are forward-looking statements. Although LaSalle believes that the expectations reflected in such forward-looking statements are reasonable, they do involve a number of assumptions, risks and uncertainties. Accordingly, LaSalle does not make any express or implied representation or warranty, and no responsibility is accepted with respect to the adequacy, accuracy, completeness or reasonableness of the facts, opinions, estimates, forecasts, or other information set out in this publication or any further information, written or oral notice, or other document at any time supplied in connection with this publication. LaSalle does not undertake and is under no obligation to update or keep current the information or content contained in this publication for future events. LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication and nothing contained herein shall be relied upon as a promise or guarantee regarding any future events or performance.
By accepting receipt of this publication, the recipient agrees not to distribute, offer or sell this publication or copies of it and agrees not to make use of the publication other than for its own general information purposes.
Copyright © LaSalle Investment Management 2024. All rights reserved. No part of this document may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including without limitation photocopying and recording on magnetic tape, or included in any information store and/or retrieval system without prior written permission of LaSalle Investment Management.
This article first appeared in the July-August 2024 edition of IREI (subscription required)
What the data tells you and what it does not
Chase McWhorter, Institutional Real Estate, Inc.’s managing director, Americas, recently spoke with Elena Alschuler, Head of Sustainability, Americas and Julie Manning, Global Head of Climate and Carbon at LaSalle, to examine the regional differences in interpreting physical climate-risk data. Their interview is published in the July/August issue of Institutional Real Estate Americas where they delve into the implications of climate migration on investors. The discussion sheds light on how investors incorporate climate-risk data into their investment decision-making processes.
Want to read more?
Recognition has grown substantially in recent years that climate risk can shape real estate investment outcomes. This owes to an increasing frequency and severity of loss events,1 surging insurance premiums,2 improving data availability and a mounting reporting burden driven by regulations.3 Investors have had to move quickly from acquiring basic climate risk literacy, to sourcing good quality climate risk data, to most recently, leveraging that data into improved investment decisions. There is a clear and rising likelihood that investors on the lagging edge of this process may underperform.
At LaSalle, we have sought to share insights from our own climate risk journey, combining that with broader analysis of our industry’s climate risk challenges and opportunities. In 2022, we partnered with the Urban Land Institute (ULI) on a report, How to choose, use, and better understand climate-risk analytics, which addressed the difficulties in selecting and evaluating climate data from an ever-changing and increasingly crowded—and sometimes contradictory—data provider landscape. In April, we released a new report with ULI, Physical Climate Risks and Underwriting Practices in Assets in Portfolios, which looks at how investors are taking these data and seeking to make better-informed buying, selling and portfolio construction decisions based on them.
While the joint ULI report takes an industry-wide view, this ISA Briefing looks at the topic through the lens of LaSalle’s own investment process. We present three case studies of our evaluation of climate risk on a regional, market and asset-level scale. These examples – one each from each of our global investment regions – illuminate how we are taking account of climate risk and lay out our views on issues investors should be thinking about.
A broader regional view: wide-scale impacts
In 2023, the US recorded 28 weather/climate disaster events for which losses exceeded $1 billion, the highest recorded number of distinct events exceeding that threshold.4 But of course, these events were not uniformly distributed across the country. To better understand the geographic predisposition of parts of the country to these hazards, LaSalle’s US Research and Strategy team developed two separate climate risk indexes, evaluating current and future climate risk. The indexes encompass a range of climate hazards, such as heatwaves, floods and wildfires, with earthquakes added as a non-climate threat. The current climate risk index harnesses machine learning to scrutinize hyper-local data from the Federal Emergency Management Agency (FEMA). Meanwhile, the future climate risk projections rely on data from the Rhodium Group data set, as analyzed by ProPublica and assuming an RCP 8.5 scenario.5
Looking at climate risk at a regional scale has been useful in several ways. First, it can accelerate analysis of new opportunities by acting as a “yellow flag,” directing resources early in the underwriting process toward deeper analysis into asset-specific climate risk issues that may turn out to be red flags. Second, regional climate risk can be integrated into market-targeting tools, weighing it alongside other factors that influence real estate performance (for example, demographic variables such as population growth and real estate variables like the prospects for rental growth). To this end, LaSalle has embedded these climate risks scores into our proprietary Target Market Analyses (TMAs). Thirdly, it can help frame inquiry into how metro-level performance factors, such as migration patterns, can interact with climate risk over time.
On that last point, the map appears to beg a question about recent migration trends that have favored the Sunbelt.6 Are people disproportionally moving to at-risk places, and if so, why? An important follow-on question that is germane for investment strategy is whether climate change may eventually cause a reversal of recently observed migration patterns. Indeed, we do observe a discernible, moderately positive correlation7 (+29%) between climate risk exposure and increased migration over the past five years. This pattern holds, and even intensifies, when considering population growth projections for the next five years (+47% correlation).8
The implication is that regions facing severe climate challenges continue to draw new residents. This suggests that environmental risks may not yet be so widely recognized as to shape behavior. That said, a mere 8% of market value within the NCREIF Property Index’s (NPI) apartment asset base is situated in markets we classify as high-risk.9 This suggests the impact in the near-term on institutional real estate investors will be limited, at least until climate change is severe enough to routinely impact markets in the next less risky band, which encompasses 16% of total NPI apartment value.10 Either way, investors looking to the long-term would be wise to consider how people will respond to growing climate hazards in high-risk markets. If a major reaction is that Sunbelt denizens relocate back to the Rustbelt, that could have significant implications for regional economic growth and real estate market prospects.
A market-level view: Evaluating mitigating infrastructure
Below the regional level, it is at the scale of an individual metro area where different degrees of exposure to climate risk can be evaluated with more granularity. It is often at this level where both in-place and planned efforts to mitigate the potential impacts of climate hazards can be identified. As we discussed in our 2022 ULI report, such measures can confound traditional climate risk data if they ignore its impact.
For example, when overlaying LaSalle’s global portfolio with raw data from our climate risk providers, Amsterdam and its broader ‘Randstad’ region stand out as especially exposed to sea-level rise. Not considering any protective infrastructure, we estimate that 52% of Amsterdam and 38% of Rotterdam commercial property would have a significant exposure to severe flood.11
Thankfully, the Dutch have been building dams and levees to protect their low landmass from flooding for centuries.12 Modern infrastructure investment accelerated in the wake of the 1953 North Sea flood – a combination of a severe European windstorm and high spring tide that caused the sea to flood land up to 5.6 meters above mean sea level.13 The ‘Deltawerken’ (Delta Works), now complete, consists of a set of storm surge barriers, locks and dams mainly located in the south of the country. But the Dutch flood defense program extends beyond the Delta Works,14 encompassing almost 1,500 constructed barriers, including more than 20,000 kilometers of dikes, enough to encircle the country over 15 times. In fact, the Delta Works program has evolved into the Delta Programme, a continuous project that take future effects of climate change into account, with a target of 100% of the Dutch population protected by floods not exceeding a 1 in 100,000-year event by 2050.15
The presence of these flood defense programs is of imperative importance when considering the Dutch markets for investments. We find that many climate risk data providers do not adjust for the Netherlands’ formidable stock of anti-flood infrastructure investment which mitigates much of the risk. Investors who act as uncritical “takers” of unadjusted climate risk stats may thus excessively underweight the Dutch market.
An asset-level view
Below the regional and market level, the asset level is where the outcomes of climate hazards have the most direct impact on a building’s structural integrity or the ability to access and operate a property. An asset manager’s actions can directly influence a building’s capacity to withstand climate-related hazards. This tends to be the most impactful when such interventions are made during the design phase of the development.
For example, take the case of a LaSalle logistics development in Osaka, Japan, a city that has historically been vulnerable to flooding due to its geographical location, with much of the urban area made up of flat lowlands that make natural drainage a challenge in the event of tsunamis and heavy rainfall.16 The local city planning assesses the maximum level water could rise above sea level by submarket in the event of a flood. The flood height varies by location while considering additional factors such as the city’s infrastructure (i.e., floodgates and seawalls) and the overall elevation of the submarket. In the case of one of LaSalle’s Osaka Bay logistics developments, the subject warehouse is at a site where water levels could rise to three meters above sea level in the case of a flood.17
Seawalls, ranging in height from 5.7-7.2 meters protect the asset from extreme floods coming from the sea. To further mitigate the flood risk in the case of extreme rainfall or failure of the sea walls, the warehouse is designed with an elevated floor plate that puts the ground level 1.4 meters above mean sea level, and places key building equipment on the second floor, minimizing potential damage to the asset in the event of flood. This effort resulted in a 4.4 meter clearance above sea level (i.e., sea level + 1.4 meter buffer + 3 meters = 4.4 meters), which is above the required 3.5 meters above sea level (i.e., sea level + 1.4 meter buffer + 2.05 meters = 3.45 meters) for the location. In addition, the property management team has been trained and equipped to minimize flood damage on the first floor by closing the doors and shutters and placing sandbags in any gaps. By incorporating considerations to mitigate flood risk when designing the warehouse, the asset is well positioned to support tenants’ business continuity plans in the event of a flood.
Looking ahead
- The impacts of an evolving climate need to be considered through multiple lenses, from country or continent spanning impacts, down to the level of individual assets. At all levels it is necessary to understand the interplay between the impact of climate on people, how governing bodies are responding to it, and how asset and investment managers have opportunities to better safeguard their portfolios against climate-related risks.
- Investors should use climate risk data, but apply an overlay of judgement, particularly concerning factors that climate risk data providers generally do not incorporate well. A key example of this is the impact of protective infrastructure. Investors should ask: What mitigating infrastructure is currently in place? Over what time horizon is this accounted for in the present time? Are the plans to strength, expand or enhance local infrastructure in the future? Are these initiatives being appropriately funded, to ensure that plans become a reality?
- While our collaboration with ULI on two reports is rooted in a desire to help the industry adopt best practices, standardization need note – and indeed should not – be the central goal. In the future, we expect an increasing share of real estate transactions to be at least partly motivated for buyers’ and sellers’ disagreement on the climate risks faced by a property.18 With increasing severity and intensity of climate-related loss events and surging insurance costs, it is our view that players that get climate risk right are likely to outperform those who do not. Having a differentiated climate risk process could lead to differentiated investment outcomes.
Footnotes
1 Source: National Centres for Environmental Information of the National Oceanic and Atmospheric Administration (NOAA). See Billion Dollar Weather and Climate Disasters
2 Source: The Climbing Costs to Insure US Commercial Real Estate, MSCI, November, 29 2023
3 The TCFD framework which has now been absorbed by IFRS’ ISSB, serves as the framework with which other international reporting standards setters seek to align such as the US SEC who voted in favour of The enhancement and standardization of climate-related disclosure, or the UK Government and the Sustainability Standards Board of Japan who will align its disclosure standards with ISSB.
4 According to the National Centers for Environment Information (NCEI). $1 billion threshold adjusted for inflation in historical periods. See https://www.ncei.noaa.gov/access/billions/.
5 RCP refers to Representative Concentration Pathway, a standard for modeling future climate scenarios of greenhouse gas concentration in the atmosphere. RCP 8.5 represents an extreme case scenario. See this Intergovernmental Panel on Climate Change (IPCC) glossary for more detail.
6 For more discussion on this trend, see our recent ISA Briefing, US migration trends and (U)rbanization.
7 Cross-sectional correlation between the LaSalle current climate risk index and the population change in the top 45 US metro areas between December 2018 and December 2023.
8 Cross-sectional correlation between the LaSalle future climate risk index and population change in the top 45 US metro areas between December 2023 and December 2028 based on Moody’s forecast as of February 2024.
9 Source: LaSalle analysis of data from NCREIF, FEMA.
10 Source: LaSalle analysis of data from NCREIF, FEMA.
11 Source: LaSalle analysis of MSCI data.
12 Source: The Dutch experience in flood management: A history of institutional learning
13 Source: The devastating storm of 1953, The History Press
14 Source: Dutch primary flood defenses, Nationaal Georegister
15 See Delta Programme 2024
16 See Osaka city – Flood disaster prevention map outline from the Osaka City Office of Emergency Management.
17 Estimates of maximum flood depth are based on historical records of natural disasters such as earthquakes, river floods and tsunamis that have occurred as reported by Japan’s Ministry of Land, Infrastructure and Tourism.
18 A superficial view of markets is that transactions are based on agreement on value. More accurately, buyers and sellers agree on a price, but their willingness to transact is based on disagreement on value. A seller, for example, may have a less bullish view on NOI growth prospects than a buyer. We expect the same disagreement on climate-related risk/reward trade-offs to be increasingly important.
This publication does not constitute an offer to sell, or the solicitation of an offer to buy, any securities or any interests in any investment products advised by, or the advisory services of, LaSalle Investment Management (together with its global investment advisory affiliates, “LaSalle”). This publication has been prepared without regard to the specific investment objectives, financial situation or particular needs of recipients and under no circumstances is this publication on its own intended to be, or serve as, investment advice. The discussions set forth in this publication are intended for informational purposes only, do not constitute investment advice and are subject to correction, completion and amendment without notice. Further, nothing herein constitutes legal or tax advice. Prior to making any investment, an investor should consult with its own investment, accounting, legal and tax advisers to independently evaluate the risks, consequences and suitability of that investment.
LaSalle has taken reasonable care to ensure that the information contained in this publication is accurate and has been obtained from reliable sources. Any opinions, forecasts, projections or other statements that are made in this publication are forward-looking statements. Although LaSalle believes that the expectations reflected in such forward-looking statements are reasonable, they do involve a number of assumptions, risks and uncertainties. Accordingly, LaSalle does not make any express or implied representation or warranty, and no responsibility is accepted with respect to the adequacy, accuracy, completeness or reasonableness of the facts, opinions, estimates, forecasts, or other information set out in this publication or any further information, written or oral notice, or other document at any time supplied in connection with this publication. LaSalle does not undertake and is under no obligation to update or keep current the information or content contained in this publication for future events. LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication and nothing contained herein shall be relied upon as a promise or guarantee regarding any future events or performance.
By accepting receipt of this publication, the recipient agrees not to distribute, offer or sell this publication or copies of it and agrees not to make use of the publication other than for its own general information purposes.
Copyright © LaSalle Investment Management 2024. All rights reserved. No part of this document may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including without limitation photocopying and recording on magnetic tape, or included in any information store and/or retrieval system without prior written permission of LaSalle Investment Management.
Report Summary: Physical climate risk data can be a powerful tool for managing asset and portfolio risk and returns. Learn what strategies leading firms are using to manage physical climate risks and navigate market challenges. The latest report from the Urban Land Institute and LaSalle Investment Management builds on their previous report, How to Choose, Use, and Better Understand Climate Risk Analytics, to describe how leading firms are leveraging physical climate-risk data in underwriting practices. With insight into asset- and portfolio-level risk becoming increasingly easy to obtain, new challenges lie in effective interpretation and integration of information into investment practices. Relying on research and interviews with industry leaders, this report provides a nuanced exploration of this emergent issue.
Physical Climate Risks and Underwriting Practices in Assets and Portfolios is structured into three sections, each addressing different aspects of the industry’s response to climate-risk data:
Section 1. Explore the current state of the industry, finding that:
• Leading firms actively coach their teams on physical risk.
• Regulatory trends affect, but do not motivate physical risk assessment.
• Different geographies approach physical with their own level of urgency.
• Investment managers tend to focus on fund risk, capital providers on portfolio risk.
• Tools to understand and price physical risk are still in a nascent stage of development.
Section 2. Examines the application of climate data in decision making. Key findings include:
• Aggregate physical risk is a screening tool; individual hazard risk is actionable information.
• Climate value at risk remains opaque; the utility of the single number offers value but needs increased transparency.
• Atypical hazard risk (e.g., flood in a desert) merits increased attention.
• External consultants can frequently fill skill gaps, especially for firms with less in-house expertise.
• While no predominant timeframe or Representative Concentration Pathway (RCP) emerged as industry standard, the 2030 and 2050 benchmarks were the most commonly referenced time horizon.
Section 3. Assess the impact of physical climate risk on acquisition, underwriting, and disposition practices; finding that:
• Leading firms start with a top-down assessment of physical risk.
• Market concentration of physical risk is analogous to other concentration risks—a nuanced analysis is required.
• Capital expenditure for resilience projections is a key forecast but rife with uncertainty.
• Local-market climate mitigation measures are important to understand but difficult to forecast.
• Exit cap rate discount for estimated physical risk is an increasingly commonly used tool, frequently 25 to 50 basis points.
• Firms infrequently disclose physical risk but the market needs increased transparency.
Important Notice and Disclaimer
This publication does not constitute an offer to sell, or the solicitation of an offer to buy, any securities or any interests in any investment products advised by, or the advisory services of, LaSalle Investment Management (together with its global investment advisory affiliates, “LaSalle”). This publication has been prepared without regard to the specific investment objectives, financial situation or particular needs of recipients and under no circumstances is this publication on its own intended to be, or serve as, investment advice. The discussions set forth in this publication are intended for informational purposes only, do not constitute investment advice and are subject to correction, completion and amendment without notice. Further, nothing herein constitutes legal or tax advice. Prior to making any investment, an investor should consult with its own investment, accounting, legal and tax advisers to independently evaluate the risks, consequences and suitability of that investment.
LaSalle has taken reasonable care to ensure that the information contained in this publication is accurate and has been obtained from reliable sources. Any opinions, forecasts, projections or other statements that are made in this publication are forward-looking statements. Although LaSalle believes that the expectations reflected in such forward-looking statements are reasonable, they do involve a number of assumptions, risks and uncertainties. Accordingly, LaSalle does not make any express or implied representation or warranty, and no responsibility is accepted with respect to the adequacy, accuracy, completeness or reasonableness of the facts, opinions, estimates, forecasts, or other information set out in this publication or any further information, written or oral notice, or other document at any time supplied in connection with this publication. LaSalle does not undertake and is under no obligation to update or keep current the information or content contained in this publication for future events. LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication and nothing contained herein shall be relied upon as a promise or guarantee regarding any future events or performance.
By accepting receipt of this publication, the recipient agrees not to distribute, offer or sell this publication or copies of it and agrees not to make use of the publication other than for its own general information purposes.
Copyright © LaSalle Investment Management 2024. All rights reserved. No part of this document may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including without limitation photocopying and recording on magnetic tape, or included in any information store and/or retrieval system without prior written permission of LaSalle Investment Management.
London (March 11, 2024) – LaSalle Investment Management (“LaSalle”), the global real estate investment manager, has appointed Bouygues Rénovation Privée (“Bouygues”) as the main contractor for the redevelopment of Bergère, a landmark office-led, highly-amenitized workspace project in Paris.
Situated in the 9th Arrondissement, Bergère is in a prime location in the heart of Paris, surrounded by a thriving cluster of companies from across technology, fashion, and financial and professional services. It forms part of a vibrant urban environment with a high concentration of restaurants, bars, shops, department stores, and cultural and leisure facilities. Positioned just 150 metres from the Grands Boulevards metro station, Bergère also benefits from convenient transport links and access to three of Paris’s largest transportation hubs: Gare du Nord, Saint Lazare and Chatelet – Les Halles. The renovated building will have a floor area of approximately 26,850 square meters and was redesigned by the leading French architectural firm PCA-Stream.
Scheduled for completion in Q1 2026, the redevelopment of Bergère will incorporate industry-leading sustainability practices. This will involve a sensitive restoration of the building’s architectural heritage while upgrading the technical equipment to meet operational Net Zero Carbon goals. The project will prioritise the reuse of materials to minimise the projected embodied carbon associated, and the building is targeting a BREEAM Excellent certification, with a 50% reduction in operational CO2e and a 20% reduction in embodied CO2e compared with the benchmark for Parisian office renovations.
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.
Marc Fauchille, Head of Development and Repurposing, Europe, LaSalle Investment Management, commented: “We are excited to work together with the experience and expertise at Bouygues Bâtiment Ile-de-France on Bergère, to create an innovative and truly revolutionary workspace in the heart of Paris. Bergère is set to be a prime office-led development in Paris, situated in a highly sought-after location in one of the strongest European markets. The project is already attracting a high level of tenant interest given its quality, location and sustainability credentials.”
Thomas Rousseau, Managing Director of Bouygues Bâtiment Ile-de-France Rénovation Privée, adds: “We are very proud to have been selected by LaSalle Investment Management for this Parisian prime office restructuring operation, which is also listed as a Historic Monument. The teams were particularly driven by the ambition of the project, the technical complexity as well as the challenges in terms of uses and the environment. This success is the result of collective work. Our teams are already mobilized to highlight their expertise and know-how in heritage restoration, our core business. This building is a real showcase for our company in terms of decarbonization, exemplarity and innovation. A big thank you to LaSalle Investment Management and its partners for trusting us with the realization of this exceptional project.
LaSalle acquired Bergère, on behalf of Encore+, its flagship open-ended pan-European fund, in May 2020 from BNP Paribas in a sale-and-leaseback transaction.
Ends
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 $90 billion of assets in private and public real estate equity and debt investments as of Q4 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.
Marketing Disclaimer: This information 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 information purposes only 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. Please refer to the offering documents Encore+ for detailed information on the risks, reward and performance information of the Fund.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
London (February 26, 2024) – LaSalle has been recognised as Real Estate Firm of the Year (ESG) at the New Private Markets Awards 2023 in recognition of the steps taken last year to embed sustainability across its operations in Europe.
LaSalle completed net zero carbon audits for 177 properties in the UK and continental Europe, created a dedicated NZC implementation team, and introduced sustainability-related performance targets for all investment-related employees, with 119 having already undertaken bespoke training.
Alex Edds, Head of Sustainability, Europe at LaSalle commented:
“This award recognises the significant progress we’ve made in delivering on our sustainability strategy in Europe, and in particular our net zero carbon programme. We remain committed to improving and delivering upon ours and our clients’ sustainability goals in ways that also drive investment performance.”
Read more about this year’s New Private Market Awards on the NPM website (subscription required): New Private Markets Awards 2023: ESG in fund management winners.
ENDS
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 $89 billion of assets in private and public real estate equity 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 www.lasalle.com, and LinkedIn.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
There is no doubt that commercial real estate is entering a period of transition, one in which sustainability will be as important as commercial performance.
The sustainability credentials of assets and funds will be subject to greater scrutiny by regulators, investors and occupiers. Those slow off the mark will find it difficult to protect and create value.
At LaSalle, delivering investment performance today is all about ensuring a better tomorrow for our stakeholders. We undertake our responsibility to the planet, our clients and our people with the highest degree of sincerity and integrity. The thematic lens adopted by our Global Management Committee to drive this is centred around the phrase “People, Planet,
Performance.” Our view is that delivery of investment performance and a sustainable future for our stakeholders are not mutually exclusive when acting as a steward and fiduciary of investment capital.
London (January 25, 2024) LaSalle Investment Management, the global real estate investment manager acting on behalf of Malaysian investor Permodalan Nasional Berhad (PNB), has selected Multiplex Construction Europe Limited (Multiplex) as the main contractor for the construction of One Exchange Square, a state-of-the-art 447,000 square foot office development at Broadgate Campus in the City of London. M3 Consulting are acting as the Development Manager for the project.
Designed by Fletcher Priest Architects, the 13-story scheme to be delivered by Multiplex will comprise 430,000 square feet of premium workspace and 17,000 square feet of retail, fronting both Bishopsgate and the newly re-landscaped park at Exchange Square. With 13 upper floors and floorplates averaging 40,000 square feet, the building features landscaped terraces on every floor, totalling 33,000 square feet across the building. In addition to boasting a striking feature reception and 8,000 square feet amenity lounge, One Exchange Square benefits from outstanding transport connections and a diverse array of amenities, conveniently situated just a one-minute walk from Liverpool Street Station and surrounded by vibrant locations such as Broadgate Campus, Spitalfields, Shoreditch and the City of London.
Scheduled for completion in Q1 2026. One Exchange Square is envisioned as an office of the future, designed to meet tenants’ high sustainability and wellness demands. It is targeting exemplary environmental credentials, including a BREEAM Outstanding rating, NABERS 5* and Well Platinum. By retaining 90% of the existing structure, the asset will have 50% lower embodied carbon than a typical new build office of comparable size, saving approximately 7,600 tonnes of CO2e compared to the GLA 2030 target. The project is 100% electric, using intelligent façade design and mechanical services twinned with building management systems to manage operational energy use.
Gary Moore, Head of International Accounts, Europe, LaSalle Investment Management commented: “Once completed, One Exchange Square will be a truly landmark office development in London. It will boast top-notch environmental performance ratings in a conveniently central location, and is poised to be highly sought after for years to come. We are excited to work with Multiplex on its development and construction, integrating state-of-the-art design and sustainability features to cater to the needs of its future tenants.”
Callum Tuckett, Managing Director at Multiplex, said: “We are incredibly proud to have been selected by LaSalle and PNB to transform this key building in the Broadgate campus and the City of London. We look forward to working with our development partners and all the professional teams to deliver a contemporary and highly sustainable building that will have a positive impact not just on its occupiers but on the surrounding areas of Bishopsgate and Exchange Square.”
Trowers & Hamlins LLP advised on property, planning, procurement and construction legals. The construction team was led by partner James Huckstep and assisted by Nicola Conway and Natasha Kaulsay.
JLL and Cushman and Wakefield are advising on the repositioning and leasing of the project.
ENDS
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 $89 billion of assets in private and public real estate equity 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 www.lasalle.com, and LinkedIn.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
CHICAGO, LONDON, SINGAPORE (January 15, 2024) – LaSalle Investment Management (“LaSalle”), the global real estate investment manager, has recorded strong sustainability performance results in two industry-recognized global Environmental, Social and Governance (ESG) benchmarks for asset managers.
In the 2023 Global Real Estate Sustainability Benchmark (“GRESB”), 20 of the firm’s funds and separate accounts, domiciled across Europe, North America, and the Asia-Pacific region, have been recognized for their ESG standards. Across the 20 submissions, seven achieved a 5-star rating, up from four in 2022, nine achieved a 4-star rating, and four achieved a 3-star rating. LaSalle China Logistics Venture was ranked 1st place within its sector peer group, and the firm’s average score increased by nearly three points from 82.22 in 2022 to 85.15 in 2023.
LaSalle commingled products recognised within the 2023 GRESB include:
- LaSalle Asia Opportunity Fund V
- LaSalle Asia Opportunity Fund VI
- LaSalle Asia Venture Trust
- LaSalle Canada Property Fund
- LaSalle China Logistics Venture
- LaSalle Encore+
- LaSalle E-REGI
- LaSalle Japan Property Fund
- LaSalle Japan Retail Portfolio
- LaSalle LOGIPORT REIT
- LaSalle Property Fund
- JLL Income Property Trust
In addition, LaSalle has received updated scores for the 2023 ‘Principles for Responsible Investment’ (“PRI”) Assessment Report, securing four stars in the categories pertaining to Policy Governance and Strategy, Direct – Listed Equity – Active Fundamental, and Confidence Building Measures, as well as achieving three stars for Direct Real Estate.
LaSalle PRI Assessment Report results include:
- Policy Governance and Strategy: 4 stars
- Direct – Listed equity – Active fundamental: 4 stars
- Confidence buildings measures: 4 stars
- Direct – Real Estate: 3 stars
Julie Manning, Global Head of Climate and Carbon at LaSalle, commented: “LaSalle is committed to improving and delivering upon our clients’ ESG goals in ways that also drive investment performance, and these impressive results reflect this effort. Sustainability factors are key to our corporate strategy in addition to being a focus throughout our investment process. In the year ahead, we will continue to embed sustainability further into each function across our operations and maintain our position as a leader in the industry.”
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/.
About the PRI
The PRI is the world’s leading proponent of responsible investment. It works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole. The PRI encourages investors to use responsible investment to enhance returns and better manage risks, but does not operate for its own profit; it engages with global policymakers but is not associated with any government; it is supported by, but not part of, the United Nations. For more information about UN PRI and its ESG benchmarking and reporting for real estate, please visit https://www.unpri.org/
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 equity 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 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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
London (November 7, 2023) – Related Argent and joint venture partner Invesco Real Estate have appointed the main contractor and secured the debt finance for the development of Brent Cross Town’s second Build-to-Rent (BtR) building, enabling construction of 286 new homes. Galliford Try will deliver the homes and over 17,000 square feet of amenity and retail space, while the £97 million debt financing is provided by LaSalle Investment Management, further building on the significant momentum at the £8 billion net zero park town in London.
The debt financing takes the form of a Green Loan, lending dedicated to sustainable projects, which is linked to the strong environmental credentials of the building. The building is designed to be supplied with very low carbon heating and cooling from the development’s electric district heating and cooling network, which is being delivered in partnership with Vattenfall. In addition, the building aims to deliver a measurable net gain in biodiversity and to minimise construction waste and embodied carbon through efficient off-site manufacturing. LaSalle Debt Investments’ green loan structures are compliant with the Loan Market Association’s green loan framework. The overall Brent Cross Town development is committed to reaching net zero by 2030.
The announcement demonstrates the significant progress being made at Brent Cross Town. Six buildings are now underway, the first of which will be completed from the end of 2024. In total, over 930 homes, including affordable, market sale and BtR homes are on-site along with 662 student rooms in partnership with Fusion Students. Sheffield Hallam University will open its first satellite campus outside of Yorkshire at Brent Cross Town, and a joint venture between Audley Group and Senior Living Investment Partners (Octopus Real Estate and Pension Investment Corporation) will create a retirement village with around 150 homes.
Brent Cross Town is being delivered in partnership between Related Argent and Barnet Council and will create a total of 6,700 new homes, 3 million square feet of offices, a high street and schools surrounded by 50 acres of parks and playing fields including the new 4.5-acre Claremont Park which was completed last year. The new town will benefit from Brent Cross West station, which will be the first major new mainline station in London in more than a decade when it opens later this year, connecting with King’s Cross St Pancras in as little as 12 minutes.
The new contractor appointment and financing is part of the joint venture between Related Argent and Invesco Real Estate, the global real estate investment manager, formed at the end of 2022 to deliver £600 million of Gross Development Value, including over 800 homes as well as retail by 2025.
Galliford Try, one of the UK’s leading construction groups, is already delivering the first BtR building at Brent Cross Town. Its appointment by the Related Argent and Invesco Real Estate joint venture to deliver the second BtR building comprising 286 homes, a mix of market and discount market rent homes, will bring the total number of BtR homes under construction at Brent Cross Town to 535.
All will be developed and managed by Related Argent, which has just opened a brand-new premium rental development, Author King’s Cross on the King’s Cross estate. Related Argent’s BtR portfolio draws on the established record of Related Companies, which has over 71,000 homes across the United States. Known for its outstanding customer service, Related Companies has decades of proven experience in the sector.
The 286 new homes are designed by Allies & Morrison, with interiors by Conran and Partners, and range from studio to three-bedroom apartments, with block amenities shared with the first BtR building at Brent Cross Town, including a large central lobby with 24-hour concierge, wellness hub, including a gym, fitness studios, 25 meter pool and sauna, work from home spaces, private dining spaces, roof top terraces, podium gardens, guest suites and a cinema.
Tom Goodall, Managing Director of Related Argent, said: “There is strong momentum behind our BtR portfolio with our first rental homes now completed at Author King’s Cross and over 1,000 BtR homes under construction. Our joint venture with Invesco Real Estate at Brent Cross Town and the financing from LaSalle Investment Management is helping meet an increasing gap in the market and addressing the city’s growing demand for high-quality rental properties in vibrant places.”
John German, Managing Director, Residential Investments at Invesco Real Estate, said: “When Invesco and Related Argent closed our Joint Venture in October 2022, we only had one build contract and one loan in place. 12 months later, we now have secured all four build contracts and the necessary loan facilities to enable the project to move forward as we had planned. We are delighted that the Project Team achieved this key milestone which now allows the project to move forward into the delivery stage to enable these assets to be delivered into our investor’s existing BtR Portfolio of just under 1,100 units.”
Robert Fay, Director, Debt Investments at LaSalle Investment Management added: “We are very pleased to work with Related Argent and Invesco Real Estate to provide the debt financing for this project, which brings together market leaders in urban regeneration and best-in-class accommodation in a great location with strong transport links to Central London. The living sector is one of LaSalle’s highest convictions across our European lending and equity strategies. This financing is LaSalle’s 26th development loan made since 2012 and builds on our development lending track record, providing flexible, sustainable loans to high-quality sponsors.”
Bill Hocking, Chief Executive of Galliford Try, said: “We are delighted to be working once again with Related Argent on one of the most significant Build to Rent schemes in London. Our business has a strong track record in producing high-quality residential developments with the sector remaining a key focus for our Building business within our Sustainable Growth Strategy.”
Councillor Ross Houston, Deputy Leader of Barnet Council and Cabinet Member for Homes and Regeneration, said: “Barnet’s new park town has been carefully designed to meet the needs of our residents now and in the future with a range of options including social housing, private sale homes, student accommodation and homes built to rent. I welcome the progress being made on Brent Cross Town’s first new homes that are being built specifically with Barnet renters in mind.”
The BtR offering at Brent Cross Town forms a major part of Related Argent’s portfolio of over 3,000 rental homes alongside King’s Cross and Tottenham Hale. The first residents moved into its first BtR development, Author King’s Cross, in October 2023. Related Argent has plans to expand its rental portfolio beyond the 3,000 homes.
Ends
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 $78 billion of assets in private and public real estate property and debt investments as of Q1 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.
About LaSalle Debt Investments
LaSalle Debt Investments is part of LaSalle’s growing $10bn Debt & Value-Add Strategies platform in Europe and invests in a diverse range of real estate credit products – spanning senior loans, whole loans, mezzanine, development finance, corporate finance, NAV facilities and preferred equity – with significant experience across various sectors, geographies, deal sizes and capital structures. Since launching the business line in 2010, LaSalle has been one of Europe’s most active alternative real estate debt providers with a long track record of lending to best-in-class sponsors.
About Related Argent
In 2015, Argent and Related joined forces to create an unrivalled UK property business and urban regeneration specialist. The company brings together the expertise and track record of Argent – the developer behind some of Britain’s most successful mixed-use places, and Related – one of the most innovative and prolific real estate companies in the US. The combined experience delivering ground-breaking projects such as King’s Cross in London, Hudson Yards and Deutsche Bank Center in New York, Brindleyplace in Birmingham, The Square in West Palm Beach, Florida and The Grand LA in Los Angeles is brought to bear on each of the projects.
Related Argent operates across a range of property sectors including residential, workspace, education, shopping, hospitality and leisure. Its work goes beyond bricks and mortar development. It also specialises in the services, facilities and experiences that are so important to urban life – art, culture, events, schools, skills & training programmes and renewable energy networks.
Related Argent is one of the UK’s leading developer-owner-operators and, since its inception eight years ago, has rapidly grown a £9Bn+, 12m sq ft mixed-use development pipeline. This includes major regeneration projects in London, at Brent Cross Town and Tottenham Hale, as well as a Build-to-Rent (BtR) scheme at King’s Cross, known as ‘Author King’s Cross’. It’s accessing global capital markets to deliver major new projects across the UK and is seeking to expand its BtR housing portfolio. On 1 May 2024, Argent will transfer all employees, projects and assets to Related Argent Limited.
Related Argent’s vision is to be a great city builder – for people, planet, and prosperity and its purpose is to improve urban life for all, everyday. This means developing for the long term – astutely, sustainably and with a sense of social purpose. Related Argent is delivering the places, homes, workspace, public space, arts, culture, events and services that our UK cities and town centres need. www.argentllp.co.uk
About Invesco Real Estate
Invesco Real Estate is a global leader in the real estate investment management business with USD 91.1 billion in real estate assets under management, 586 employees and 21 regional offices across the U.S., Europe and Asia. Invesco Real Estate has a 40-year investment history and has been actively investing across the risk-return spectrum, from core to opportunistic, in equity and debt real estate strategies, and in direct and listed real estate for its c.500 institutional client relationships during this time. In Europe, Invesco Real Estate has eight offices in London, Munich, Milan, Madrid, Paris, Prague, Luxembourg and Warsaw, and 191 employees. It manages 200 assets across 14 European countries and with assets under management of USD 18 billion. Source: Invesco Real Estate as at 31 March 2023.
About Galliford Try
Galliford Try is a trading name of Galliford Try Holdings plc, a leading UK construction group listed on the London Stock Exchange. Operating as Galliford Try and Morrison Construction, the group carries out building and infrastructure projects with clients in the public, private and regulated sectors across the UK.
About Brent Cross Town
Brent Cross Town is the neighbourhood at the heart of the Brent Cross Cricklewood regeneration programme. It is a joint venture between Related Argent and Barnet Council to develop a large-scale mixed-use development including new homes, retail and office space, as well as improved schools and greenspaces in the area. Early work started on site in early 2020 and construction is also underway on the new Brent Cross West station which is due to open later this year. Building on the strengths of this diverse part of the city, Brent Cross Town will draw inspiration from the best of London’s long-established neighbourhoods with all their complexity and character.
At its heart, will be a focus on sport, play, health and well-being. The new neighbourhood will provide 6,700 homes, state-of-the-art workspace for over 25,000 people, and pedestrian friendly streets and squares with local shops and restaurants that will complement the offer at Brent Cross Shopping Centre. The community will be supported by first-class public transport infrastructure, a new and improved network of walking and cycle routes and a series of new parks and other amenities. www.brentcrosstown.co.uk @brentcrosstown
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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
The transition to a lower-carbon built environment is reshaping the definition of quality real estate. We can point to numerous anecdotal examples of green building features driving higher rents and values, as well as better overall performance. However, showing this rigorously and quantitively is challenging.
Various academics, real estate agencies and other researchers have attempted to measure the difference between assets that possess and those that lack green features. They use a range of datasets that vary widely and have enjoyed varying degrees of success in drawing clear, convincing findings from their analysis.
So is there a green premium? Or a brown discount?
Price, value and performance differentials between assets that possess and those that lack certain sustainable credentials are often called one of the other. In our view, the difference between the green premiums and brown discounts is a matter of perspective and can vary with time, as given attributes transition from novel, to highly valued, to standard.
For simplicity’s sake, we think of them as a single concept that we call “the value of green.”
Our approach for this report is to examine the existing work on the topic and identify the most helpful and relevant analyses. This sits alongside our monitoring of outcomes within our own portfolio, a few examples of which we highlight as case studies.
We find that while the range of estimates are wide, and depend on a variety of methodological considerations, the studies consistently find a statistically significant financial impact of asset sustainability features on metrics such as achieved rent, capital value, leasing success and overall performance. We will continue to monitor the evolving evidence of these differentials, both in the broader literature and within our portfolios.
So does “green” actually have value?
London (10 May 2023) – LaSalle Investment Management (“LaSalle”), the global real estate investment manager, today announces the provision of a fixed-rate green loan facility of £130m to finance Greystar’s acquisition and development of a 770-bed student housing asset in Wembley Park, London.
The loan was provided through LaSalle Debt Investments – one of Europe’s leading alternative real estate lending platforms, established in 2010.
The project is situated within the highly sought-after Wembley regeneration area, an established neighbourhood benefiting from diverse local amenities and facilities. The project benefits from excellent transportation links and is a five-minute walk to Wembley Park station, providing easy access to Central London. It is also well connected to a range of London’s leading universities, such as King’s College London and the London School of Economics.
The green loan will partially fund the construction of the 770-bed asset which is scheduled to complete in the summer of 2025. The development will comprise 20 storeys with 12,000 sq ft of amenities, including a co-working space, external courtyards and gardens, a gym and bike storage. The development has been designed with state-of-the-art sustainability credentials in mind, aiming to achieve a BREEAM rating of “Excellent” and targeting a ‘Two Star’ Fitwell accreditation.
LaSalle Debt Investments credit strategies include senior loans, whole loans, mezzanine, and development finance. It forms part of LaSalle’s pan-European Debt & Value-Add Strategies platform, which provides debt and equity capital solutions across European markets and sectors.
Ben Mowbray, Senior Director – Investment, Greystar, said: “LaSalle’s green loan facility will help us deliver a substantial, but most importantly sustainable student accommodation asset in Wembley. We are committed to ensuring our assets provide a home away from home for students in a time of unprecedented demand without compromising the environment.”
Robert Fay, Director, Debt Investments, LaSalle, said: “We look forward to helping Greystar deliver a best-in-class student product with strong sustainability credentials. This loan represents LaSalle’s fourteenth loan facility secured against student accommodation, a sector we have strong conviction in across our wider European business.”
Fiammetta Granchi, Vice President, Debt Investments, LaSalle, added: “This facility with Greystar is fixed rate and does not require syndication, providing enhanced stability to the borrower. The loan was structured as a green loan, compliant with the Loan Market Association’s green loan framework and Green Loan Principles. As the drive towards superior environmental performance accelerates, we are committed to supporting our borrowers to deliver high-quality, sustainable accommodation.”
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 Q3 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 www.lasalle.com, and LinkedIn.
About LaSalle Debt Investments
LaSalle Debt Investments is part of LaSalle’s growing $10bn Debt & Value-Add Strategies platform in Europe and invests in a diverse range of real estate credit products – spanning senior loans, whole loans, mezzanine, development finance, corporate finance, NAV facilities and preferred equity – with significant experience across various sectors, geographies, deal sizes and capital structures. Since launching the business line in 2010, LaSalle has been one of Europe’s most active alternative real estate debt providers with a long track record of lending to best-in-class sponsors.
About Greystar
Greystar is a leading, fully integrated global real estate company offering expertise in property management, investment management, development, and construction services in institutional-quality rental housing, logistics, and life sciences sectors. Headquartered in Charleston, South Carolina, Greystar manages and operates more than $250 billion of real estate in 234 markets globally with offices throughout North America, Europe, South America, and the Asia-Pacific region. Greystar is the largest operator of apartments in the United States, manages more than 817,000 units/beds globally, and has a robust institutional investment management platform comprised of more than $69 billion of assets under management, including over $29 billion of development assets. Greystar was founded by Bob Faith in 1993 to become a provider of world-class service in the rental residential real estate business. To learn more, visit www.greystar.com.
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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
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Brian Klinksiek’s article appears in Issue 12 of Summit, the official publication of AFIRE, the association for international real estate investors focused on commercial property in the United States.
Even as the US has exported trends that have transformed global property markets, several key trends originating in Europe are likely to shape property in the US and globally in the years ahead.
The opportunity to take ideas and best practices from one part of the world and implement them in another is, alongside diversification benefits, one of the great advantages of investing real estate capital across borders. Cyclical and secular themes tend to go global, albeit with leads and lags. Having a global perspective can give an investor an early-mover advantage over other players.
Historically, a common (but not exclusive) pattern has been for concepts to debut in US before emerging elsewhere. This was mirrored in my own career trajectory, which was shaped by the export of American business models. I moved from Chicago to London in 2009, and later to Hong Kong, to help my colleagues implement strategies in sectors that were established in the US but had been nascent elsewhere, such as multifamily apartments and self-storage. LaSalle has long tracked these differences in sector institutionalization and maturity on its “Going Mainstream” framework.
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Chicago (April 19, 2023) – LaSalle Investment Management (“LaSalle”) announced it has earned BREEAM certifications for 26 of its US properties. Seventeen industrial and 9 retail properties totaling more than 10 million square feet earned certifications, further highlighting LaSalle’s commitment to achieving sustainability goals across its portfolio.
BREEAM is a leading global sustainability assessment platform developed by BRE, a 100-year-old building science center developing science-led solutions to built environment challenges. BREEAM stands out among sustainability assessments given its uniquely holistic approach to evaluation — which goes beyond environmental factors, considering sustainable attributes such as resilience and health and well-being.
Elena Alschuler, LaSalle Head of Americas Sustainability, said: “To meet our net zero carbon goals, and ensure we’re on track to construct a portfolio that will stand the test of time and continue to be attractive to buyers and tenants, implementing sustainability best practices across a variety of assets will continue to be critical. We’re very proud to have achieved BREEAM certifications on 26 properties, and look forward to growing that number in the future.”
Added Breana Wheeler, US Director of Operations at BRE: “As the threat of climate risks poses an ever-increasing risk for the commercial real estate sector — and vice versa — we are thrilled to work with an industry leader like LaSalle to help set a standard for achieving meaningful sustainability goals. With over two dozen BREEAM-certified properties, LaSalle continues to demonstrate a strategic, portfolio-wide approach to meet the rising industry demand for improved ESG performance that aligns perfectly with BREEAM’s science-driven methodology, and we look forward to a continued partnership focused on thoughtful sustainable growth across the U.S. and beyond.”
The 26 BREEAM certifications add to LaSalle’s continued recognition by credible third-party sources, including the recent WELL Health-Safety certification of more than 190 properties in North America and Asia Pacific, and LEED certifications for several of its US and Canadian properties. To find out more about LaSalle’s sustainability efforts, read LaSalle’s recently published Sustainability in Focus.
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 $82 billion of assets in private and public real estate property and debt investments as of Q2 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 lasalle.com,or 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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
LONDON (11 April 2023) – LaSalle Investment Management (“LaSalle”), the global real estate investment manager, today announces that LaSalle Debt Investments, one of Europe’s largest alternative real estate lending platforms, has expanded its senior-secured debt strategies to include a dedicated sustainable lending focus. In the last year, the platform has provided over €350 million of green loans across Europe.
LaSalle Debt Investments has grown its capacity to support borrowers in retrofitting existing assets to improve their energy performance and fund the construction of the next generation of energy-efficient buildings across the UK and continental Europe.
Recent green loan activity includes a £148m senior facility to support the construction of a PBSA scheme in central London, a £115m development facility to support a multi-asset regional UK PBSA portfolio, and a €40m mezzanine facility to support the retrofit of a Berlin office asset.
LaSalle was recently recognised as ‘ESG Firm of the Year’ in the 2022 PERE Awards, acknowledging the combination of strategic hires, initiatives and deals that embed sustainability as a critical pillar of the firm’s long-term corporate strategy and overall investment philosophy.
Richard Craddock, Managing Director, leading LaSalle’s senior-secured debt strategies, said: “As the drive towards Net Zero Carbon accelerates, we continue to support our European borrowers to deliver high-quality, sustainable accommodation across sectors. Demand for loans to finance green refurbishments and the construction of energy-efficient developments will likely increase as the need to decarbonise gathers further momentum. By adding a dedicated green loan focus to our existing senior-secured strategies, LaSalle is able to provide a crucial source of capital to help reduce European real estate’s carbon footprint.”
LaSalle’s green loan structures are compliant with the Loan Market Association’s green loan framework.
LaSalle Debt Investments has over €1.5bn lending capacity in Europe across its credit strategies, which include senior loans, whole loans, mezzanine, and development finance. It forms part of LaSalle’s pan-European Debt & Value-Add Strategies division, which provides debt and equity capital solutions across European markets and sectors.
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 Q3 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 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.
About LaSalle Debt Investments
LaSalle Debt Investments is part of LaSalle’s growing $10bn Debt & Value-Add Strategies platform in Europe and invests in a diverse range of real estate credit products – spanning senior loans, whole loans, mezzanine, development finance, corporate finance, NAV facilities and preferred equity – with significant experience across various sectors, geographies, deal sizes and capital structures. Since launching the business line in 2010, LaSalle has been one of Europe’s most active alternative real estate debt providers with a long track record of lending to best-in-class sponsors.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
CHICAGO (April 10, 2023) – LaSalle Investment Management (“LaSalle”) is proud to announce that it has received the 2022 ENERGY STAR® Partner of the Year Award – Sustained Excellence from the U.S. Environmental Protection Agency and the U.S. Department of Energy for the fifth consecutive year.
Each year, the ENERGY STAR program honors a select group of businesses and organizations that have made outstanding contributions in the transition to a clean energy economy. ENERGY STAR award winners lead their industries in the production, sale, and adoption of energy-efficient products, homes, buildings, services, and strategies. These efforts are essential to fighting the climate crisis, protecting public health, and creating a clean energy future for everyone.
Elena Alschuler, LaSalle Americas Head of Sustainability, said: “Earning the ENERGY STAR Partner of the Year award for five consecutive years is a testament to LaSalle’s commitment, at every level, to sustainability throughout our portfolio. Through a standardized approach to data, including using ENERGY STAR Portfolio Manager to assess the efficiency of our properties on an ongoing basis, we have been able to achieve significant momentum and results in our sustainability and energy saving efforts.”
EPA Administrator Michael S. Regan said: “As we accelerate historic efforts to address climate change, public-private partnerships will be essential to realizing the scale of our ambition. I applaud this year’s ENERGY STAR award winners for working with EPA to deliver a clean energy future that saves American consumers and businesses money and creates jobs.”
To celebrate the 30th Anniversary of ENERGY STAR, EPA offered special one-time recognition to all organizations who certified five or more buildings in 2022. Through this effort LaSalle achieved ENERGY STAR Certification across 37 buildings earning recognition as a Certification National Premier Member.
These achievements add to LaSalle’s strong track record of ESG best practices and distinctions. Industry organizations continue to recognize LaSalle for ESG leadership and maintaining its distinction as an employer of choice. LaSalle has received the following U.S. and global awards in the past year:
- LaSalle achieved four 5-Star, eight 4-Star and six 3-Star GRESB Ratings across 18 submissions
- 193 WELL Health-Safety Ratings across Americas and Asia Pacific portfolio
- P&I Best Places to Work in Money Management (seventh year in a row)
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 $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 https://www.lasalle.com, and LinkedIn.
About ENERGY STAR
ENERGY STAR® is the government-backed symbol for energy efficiency, providing simple, credible, and unbiased information that consumers and businesses rely on to make well-informed decisions. Thousands of industrial, commercial, utility, state, and local organizations rely on their partnership with the U.S. Environmental Protection Agency (EPA) to deliver cost-saving energy efficiency solutions. Since 1992, ENERGY STAR and its partners helped American families and businesses avoid more than $500 billion in energy costs and achieve more than 4 billion metric tons of greenhouse gas reductions. More background information about ENERGY STAR’s impacts can be found at www.energystar.gov/impacts.
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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
LaSalle and Accumulata Real Estate Group are developing Munich’s first hybrid timber office building, Trí.
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less regulated energy use
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lower embodied carbon than other sustainable buildings in Germany
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DGNB Platinum pre-certification by the German Sustainable Building Council
Trí is designed to demonstrate the power of timber to deliver both environmental benefits and commercial value, with a much lower embodied carbon profile than conventional buildings and strong interest from occupiers. CBRE is acting as the lead leasing agent.
“This is an industry-leading and best-in-class project. The first of its kind in Munich, its design in accordance with circular economy principles and resource-conserving operation will serve as a benchmark in sustainable real estate. Located in one of the most sought-after office submarkets in Munich, we expect the property to be extremely well placed to meet the ever-evolving demands of future occupiers around sustainability, quality, amenities and infrastructure, while providing attractive long-term returns for our investors.”
-David Ironside, Fund Manager, LaSalle Investment Management
CHICAGO, SINGAPORE (Feb. 27, 2023) – LaSalle Investment Management (“LaSalle”) is pleased to announce it has earned the WELL Health-Safety Rating for 193 office and multifamily properties in North America and Asia Pacific through the International WELL Building Institute (“IWBI”), 43 properties more than last year. LaSalle increased its tally to 127 properties in the US and 66 properties and in Asia Pacific.
According to IWBI, this represents one of the largest and most diverse WELL Health-Safety rated portfolios globally. IWBI also confirmed that LaSalle received ratings on the most multifamily residential properties out of all entities that earned WELL-Health Safety certifications in 2022.
The WELL Health-Safety Rating is an evidence-based, third-party verified rating focusing on operational policies, maintenance protocols and emergency plans to promote overall occupant health and ensure emergency preparedness. To achieve the WELL Health-Safety Rating, the properties implemented or demonstrated features such as improved air and water quality management, health service resources, emergency preparedness programs, enhanced cleaning and sanitation procedures and stakeholder engagement and communication. The WELL Health-Safety Rating can instill confidence in those who come through the building as well as the broader community.
David DeVos, LaSalle Global Head of Sustainability, said: “Tenants are prioritizing healthy spaces where they feel safe, so it is critical to exemplify our commitment to safety to drive tenant demand and, ultimately, portfolio performance. Earning WELL Health-Safety Ratings across our portfolios in North America and Asia is a testament to our focus on tenant safety and ensuring we’re continuing to be at the forefront of the industry in providing the best spaces possible for tenants, no matter where they are.”
Added Jessica Cooper, Chief Product Officer, IWBI: “LaSalle is a demonstrated leader in real estate assets. Already engaged in WELL, LaSalle is showcasing continued leadership to scale the impact of health and well-being globally, achieving the WELL Health-Safety Rating across Asia and the Americas. IWBI congratulates LaSalle for continued achievement of the rating and investment in people-first places.”
The WELL Health-Safety Rating provides a centralized source and governing body to validate efforts made by owners and operators. It leverages insights drawn from the IWBI Task Force on COVID-19, in addition to guidance on the spread of COVID-19 and other respiratory infections developed by the World Health Organization, U.S. Centers for Disease Control and Prevention, global disease control and prevention centers and emergency management agencies, as well as recognized standard-making associations such as ASTM International and ASHRAE, and leading academic and research institutions, as well as core principles already established by IWBI’s WELL Building Standard, the premier framework for advancing health in buildings and spaces of all kinds.
LaSalle’s properties were awarded the WELL Health-Safety Rating following the successful completion of third-party documentation review by GBCI to confirm it has met the feature specific intents and requirements.
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 $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 https://www.lasalle.com, and LinkedIn.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
We property strategists are accustomed to working with traditional real estate variables such as net absorption, rental growth and vacancy rates. But in the early days of the COVID-19 pandemic, there was no choice but to go on a crash course in previously unfamiliar epidemiological concepts like positivity rates, R-naught¹ and vaccine effectiveness, as these suddenly became drivers of short-term real estate conditions. Over the past year, real estate researchers have likewise had to quickly scale a learning curve in understanding energy markets. For the first time ever, we produced charts denominated in once esoteric units of measurement like therms, MMBTUs and MWhs.²
Gas, electricity and oil prices have long been linked to real estate outcomes—energy crises sparked 1970s inflation and have shaped real estate demand from Alberta to Texas and Scotland. But when supply is predictable and prices moderate, as in the years before the pandemic, those links can become dormant. They have awoken again in the past year. The recent dramatic but uneven volatility in energy prices has deeply influenced the economic and property market outlook—especially in Europe—and we expect it to continue to do so going forward.
Europe’s cold, dark winter turns brighter
One year on from Russia’s invasion of Ukraine in February 2022, European energy markets have proven adaptable, facing down a unique degree of energy disruption owing to the region’s dependence on pipeline links from Russia. After initially skyrocketing—European natural gas price at their peak were twelve-times higher relative to the ten-year, pre-conflict average—by mid-February 2023 prices it had fallen to a level only around two and a half times that long-term average.³ Government schemes to partially socialize the cost of higher energy, at the expected expense of massive government deficits and higher borrowing costs, now look a lot less extreme.
¹ R0 is the basic reproduction number, which describes the expected number of cases of an infectious disease directly generated by a single case, in a population where all individuals are susceptible to infection.
² 1 therm = 100,000 British thermal units (BTUs), a measure used in UK natural gas pricing. 1 MMBTU = 1,000,000 BTUs, which is used in US gas pricing. 1 MWh = 1,000,000 watts of electricity over one hour, used in European pricing of natural gas.
³ Refinitiv, Natural Gas TTF (Title Transfer Facility) historical front month futures as of 13 February 2023
Source: New York Mercantile Exchange and Intercontinental Exchange data via Bloomberg. As of 1 February 2023⁴
Relatively warm weather, cutbacks in consumption and alternative sources of energy, such as renewables and the global liquified natural gas (LNG) market, have contributed to unusually full gas storage reserves. German wind, solar, biomass, hydro, and other renewables generated 47% of the country’s electricity in 2022, a five-percentage point rise in mix.⁵ This allowed European energy prices to fall and has caused headline inflation to ease substantially, even if European core inflation remains stubbornly high. This has brightened the region’s economic prospects as well; our call in the ISA Outlook 2023 (published in December 2022) that a European recession was “almost certainly underway” now appears premature.
Is Europe out of the woods? Far from it. The winter is not yet over, and a cold snap could quickly deplete gas storage reserves. Going into next winter, the Russian supply that was used to partly fill those tanks last autumn will likely be completely unavailable. Meanwhile, Chinese demand for LNG, which was down by 20% in 2022 owing to the country’s zero-COVID policy⁶, is likely to rebound as its economy reopens, leading to more competition for tanker deliveries. Europe’s energy reorientation will probably be at least a decade-long process, which will not be reduced in scope, scale or difficulty by one fortuitously warm winter—though new LNG import capacity and suppliers have accelerated the shift in the past year. We expect that energy prices will continue to have deep impacts on Europe’s economy and real estate markets.
⁴ TTF future prices have been used as a benchmark for European natural gas prices due to being the most liquid gas trading hub in Europe
⁵ German Environment Agency (UBA), press release from 12 December 2022
⁶ International Energy Agency (IEA), report from November 2022
Beyond Europe
While Europe’s historic reliance on Russian fossil fuels makes it uniquely exposed to energy risks, we see energy as a relevant, if variable, factor for global real estate. This is in part because energy markets operate at both global and regional scales. The Ukraine crisis caused an acute surge in European gas prices, but also a worldwide spike in the price of oil, which trades in a more globalized marketplace. It is worth noting that Canada and now the US are in aggregate net energy exporters, meaning increases in energy costs can be a net positive for economic growth in metro areas with concentrations of energy companies.
Energy and real estate
Going beyond the macro, the impact of energy costs on real estate varies greatly by building type. Data centers, cell towers, hotels, and cold storage are especially energy-hungry property types, and ones where operational business models mean landlords may be directly exposed to energy costs. Residential sectors vary widely, depending on the age and energy efficiency of the stock, the nature of building systems and leasing conventions. For example, the bulk of the older German residential inventory is heated by gas-fired boilers providing steam heat, and tenants pay “warm rents”—meaning the landlord is responsible paying for heat. Individually metered, modern multifamily product is more insulated—literally and figuratively—from energy prices.
Investments in commercial real estate sectors with net lease structures under which tenants pay energy bills directly, such as office and logistics, may appear shielded from energy volatility. But tenants in places where energy prices have surged have become painfully aware that these costs, historically a small portion of their total expense of occupancy, can suddenly become a significant burden. In our European portfolio, we have for the first time received requests from tenants to help lower their energy bills. Indeed, working with occupiers to improve efficiency and to generate on-site energy to reduce these bills has become an important way to retain them and maximize the affordability of the net rents they pay.
The limitations of electrical grids are also influencing property markets. The availability (or unavailability) of power is already shaping location decisions globally for energy-consumptive uses like data centers, and can be a constraining factor on building electrification, a key step in decarbonization. Weather events can intersect with the nuances of energy supply to cause blackouts, such as occurred in Texas in February 2021 and recently in parts of China, potentially putting a premium on buildings with backup sources of power.
These are just a few of the ways that energy risks have become closely intertwined with real estate investment outcomes. We expect to be following these issues more closely in the years ahead.
Looking ahead
- Real estate investors must begin to include energy factors in identifying target markets and sectors. For example, in Europe we have developed the LaSalle Energy Vulnerability Index (LEVI) which joins our European Cities Growth Index (ECGI) and other tools as an input to our market selection decisions. LEVI combines indicators such as the sources of energy by country, energy intensity, domestic energy consumption and import dependency, to assess countries’ relative susceptibility to energy shocks. LEVI is just an initial approach to assess energy risks. Because there is intuitively a strong correlation between climate transition risks and energy vulnerabilities, the approach we take in reflecting both sets of risks in our models may eventually converge into a unified approach.
- Expensive energy is a big additional incentive for installing on-site renewables such as solar and wind-generating capacity. Tenants are big beneficiaries of this because these initiatives tend to cut their gross occupancy costs. Landlords also capture some of this value by being able to charge a higher net rent, all else equal. This comes in addition to the premium we see the real estate capital markets placing on such building features, owing to their alignment with regulatory trends and the goal of decarbonization.
Converging needs are leading to more dialogue and transparency than ever before
Investors are wary about the economy. Companies are trying to attract people back to the office. Both camps are working toward their sustainability goals.
This all makes high-quality real estate – buildings that meet green specifications, or spaces that companies want to lease and where employees want to work – what everyone wants right now.
The convergence on quality is bringing about a major shift in the industry. The relationship between investors and occupiers has long been largely transactional, and at times even adversarial. But it’s increasingly becoming one of cooperation and partnership.
Beverley Kilbride, European COO of LaSalle Investment Management, and Andy Poppink, CEO of JLL EMEA Markets discuss the drivers behind this changing dynamic – and the state of real estate in general – on JLL’s website.
Our mission to deliver a better tomorrow
At LaSalle, our mission is to deliver investment performance for a better tomorrow for all our stakeholders, and sustainability and strong climate action are an integral part of delivering both performance and a better tomorrow.
We are addressing the physical and transitional risks associated with the impacts of climate change and the move to a decarbonized world, with action across all areas of our business. We firmly believe that this climate-focused approach can drive investment performance.
Our 2022 sustainability review covers our environmental sustainability strategy and approach as well as how our actions can add value for investors and other stakeholders. It highlights our 2022 results and details how we are tackling resource conservation, reducing carbon emissions and evaluating climate risk across all areas of our business. We conclude with a selection of case studies from around the world highlighting our efforts in carbon conservation, resource capture, supporting biodiversity and supporting a more circular economy.
Far from simply mitigating climate risk, our commitment to sustainability runs through every facet of our business, to ensure that we add value at every stage of an asset’s lifecycle and across the investment process.
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In this keynote interview with PERE on net zero’s responsibility and consequences, Darline Scelzo says employees want greater connectivity and a stronger sense of belonging.
When the pandemic hit, LaSalle was already formulating a new strategy for diversity, equity, inclusion (DE&I) and employee wellbeing, which evolved into a comprehensive initiative it calls the Culture of Care.
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In this keynote interview with PERE on net zero’s responsibility and consequences, David DeVos considers how to manage the risk of ESG obsolescence
As the real estate industry moves toward` net zero, how to do so cost-effectively is a consideration for investors, developers, vendors, suppliers and tenants. David DeVos, trained and licensed as an architect and now global head of ESG at LaSalle Investment Management, reflects on the direction of travel and how the industry’s many constituents must balance competing priorities.
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In 2016 LaSalle added “E” or Environmental factors to the demographics, technology and urbanization (DTU) set of secular forces real estate investors need to focus on for delivering positive long-term performance. As with other secular forces the “E-factors” are long-term in nature and live beyond the cyclical market shifts that drive near-term performance.
The early nature of the decarbonization process—both pledges and regulation—creates risks and opportunities. Catching a secular trend too early or too late in its trajectory are both risky. Our view is to move carefully and deliberately to mitigate portfolio risk and maximize returns. The net zero carbon (NZC) movement will impact different markets and segments at different points in time. The most important lesson is to pay close attention to how the trend affects specific projects and investment decisions.
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LaSalle Investment Management (“LaSalle”) has continued to deliver upon its environmental, social responsibility and governance (ESG) goals, recording improved performance in two industry-recognized global ESG benchmarks for asset managers.
Within the 2022 Global Real Estate Sustainability Benchmark (GRESB), 18 of the firm’s funds and separate accounts, domiciled across Europe, North America, and the Asia-Pacific region, have been recognized again for their ESG standards, further improving upon the results reported in 2021. Across 18 submissions, the firm achieved four 5-Star, eight 4-Star and six 3-Star GRESB Ratings.
LaSalle commingled products recognized within the 2022 GRESB include:
- LaSalle Asia Opportunity Fund V
- LaSalle Asia Venture Trust
- LaSalle Canada Property Fund
- LaSalle China Logistics Venture
- LaSalle Encore+
- LaSalle E-REGI
- LaSalle Japan Property Fund
- LaSalle Japan Retail Portfolio
- LaSalle LOGIPORT REIT
- LaSalle Property Fund
- JLL Income Property Trust
In addition, LaSalle has also received updated scores for the 2021 ‘Principles for Responsible Investment’ (PRI) Assessment Report, most notably securing a 5-star rating in the Investment & Stewardship Policy score, the only rating that applies across the whole of the firm. 5-star scores are reserved for asset managers that can, “demonstrate leading practices within the responsible investment industry.”
These results come following changes to the PRI’s reporting structure and scoring methodology, which included moving to a star classification system from letter classification.
LaSalle PRI Assessment Report results include:
- Investment & Stewardship Policy: 5 Stars
- Direct – Real estate: 4 Stars
- Indirect – Real estate: 4 Stars
- Direct – Listed equity – Active fundamental – incorporation: 4 Stars
- Direct – Listed equity – Active fundamental – voting: 2 Stars
David DeVos, Global Head of ESG at LaSalle said: “These impressive results evidenced in leading industry benchmarks demonstrate LaSalle’s commitment and expertise in delivering upon our ESG goals. While pleasing to have secured these metrics, reinforcing LaSalle’s status as a leader in responsible real estate investment, we continue to seek opportunities to accelerate our efforts in achieving our long-term targets and achieving superior performance for our clients.”
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/.
About the PRI
The PRI is the world’s leading proponent of responsible investment. It works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole. The PRI encourages investors to use responsible investment to enhance returns and better manage risks, but does not operate for its own profit; it engages with global policymakers but is not associated with any government; it is supported by, but not part of, the United Nations. For more information about UN PRI and its ESG benchmarking and reporting for real estate, please visit https://www.unpri.org/
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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
Climate risks: Too big to ignore
The last day of summer in the Northern Hemisphere was September 22nd, and cooler temperatures will surely be welcomed by many. Europe and China recorded their hottest-ever summers since recordkeeping began in 1880, according to NOAA’s National Centers for Environmental Information. Meanwhile, the US recorded its third-hottest summer by the same metric.
The summer has also been a reminder to consider both the physical and transition risks associated with climate change. Reducing carbon emissions, which is key to preventing further long-term escalation in events such as these, has come under renewed urgency given recent geopolitical tensions.
Economic impacts extended across the world. Transport throughout the UK ground to a halt for part of July as temperatures reached levels never imagined by the Victorian engineers who designed its railway network. A lack of rainfall left crops parched and caused key rivers such as the Rhine to reach levels so shallow that they were not navigable by the barges that have become a key part of Central Europe’s supply chains. In some areas of the US, the key problem was too much precipitation, with extreme rain causing severe disruption in Kentucky and Saint Louis; flooding contributed to a drinking water crisis in Jackson, Mississippi. In China, precipitation in Jiangxi and Anhui provinces in July and August was 60% less than a year ago. Record heat and drought across China, including parts of the Yangtze River, caused a shortage of hydro-power and halted shipping. Relief from this year’s extreme temperatures is coming at the same time as what looks to be another severe season for hurricanes and wildfires takes shape. Hurricane Fiona left all of Puerto Rico without power before making a rare assault on Canada’s maritime provinces, and Hurricane Ian is likely to be the worst hurricane to hit the west coast of Florida since 1921.
The summer has also been a reminder to consider both the physical and transition risks associated with climate change. Reducing carbon emissions, which is key to preventing further long-term escalation in events such as these, has come under renewed urgency given recent geopolitical tensions. Most European countries face a severe energy crisis triggered by Russia’s war in Ukraine and the cessation of natural gas flows through key pipelines. Renewables like solar power have the dual benefit of aiding decarbonization and reducing dependence on Russian fossil fuels.
As real estate investors, we are concerned about the impacts that climate change will have on our investments. On the physical risk side, it is critical that we become aware of the extent to which climate risk hazards may directly impact our portfolios and prepare our buildings to be resilient to climate change. The first step is to identify the physical climate hazards that will impact specific buildings, measure the exposure to those hazards in aggregate within the portfolio, and then get to work managing, mitigating, and strategizing around these risks.
To get the data, we have a plethora of climate data providers and forecasters to choose from, but it can be overwhelming to narrow the field down. When we reviewed multiple data providers, we found considerable inconsistency in how metrics are defined, and wide variation in risk scores for the same hazard at the same property.
Our recent report, “How to Choose, Use and Better Understand Climate Risk Analytics”, researched and written in partnership with the Urban Land Institute (ULI), is an excellent overview of the challenges faced by first-time consumers of climate data. The paper outlines physical climate risk basics, identifies differences between data providers to be aware of, and raises a call to action to standardize the outputs in ways that are most meaningful and useful for real estate, with transparency that enables apples‑to‑apples comparisons across models.
Once the data is in hand, the next step is to manage the risks at two levels: at the property level, through evaluating both existing and potential new hardening strategies to be more resilient against particular hazards; and at the portfolio level, through assessment of exposure concentrations and consideration of how climate risk informs overall portfolio construction strategies. And lastly, we must continue to monitor these risks on a regular basis, because one thing we know for sure is that our climate will continue to change, and more disruptive and damaging seasons like the hot summer of 2022 are likely to recur.
Sustainability in action: Munich’s first hybrid timber office building
The LaSalle Encore+ fund, in collaboration with ACCUMULATA Real Estate Group, is developing Trí, Munich’s first hybrid timber office building
Scheduled for completion in the first quarter of 2024, Trí will be Situated on Elsenheimerstrasse in the city’s Westend district, have a floor area of approximately 16,000 square meters and provide flexible, multifunctional spaces including a ground-floor café/bistro and landscaped roof terrace, as well as various wellness amenities, including a yoga studio and a relaxation lounge.
Trí will meet the highest sustainability standards through a variety of methods. The construction process will use reclaimed concrete from the existing building and make use of timber in the load-bearing structure, as well as ensure that materials used in construction can be recycled at the end of their service life. Trí will host a photovoltaic system for electricity generation, efficient heating, cooling and ventilation systems and make use of a ground water heat pump. The building will also harvest and store rainwater, supplying irrigation systems for the benefit of surrounding green areas.
LaSalle Investment Management (“LaSalle”) is proud to announce that it has received the 2022 ENERGY STAR® Partner of the Year Award from the U.S. Environmental Protection Agency and the U.S. Department of Energy for the fourth consecutive year.
Each year, the ENERGY STAR program honors a group of businesses and organizations that have made outstanding contributions to protecting the environment through superior energy achievements. ENERGY STAR award winners lead their industries in the production, sale, and adoption of energy-efficient products, homes, buildings, services, and strategies. These efforts are essential to fighting the climate crisis and protecting public health.
Elena Alschuler, LaSalle Americas Head of Sustainability, said: “We’re thrilled to be awarded the ENERGY STAR Partner of the Year award for the fourth consecutive year. The EPA’s continued recognition reflects LaSalle’s commitment to a data-driven approach to sustainability throughout our investment underwriting and property ownership. Our standard practice includes using ENERGY STAR Portfolio Manager to assess the efficiency of our properties on an ongoing basis, allowing us to advance our sustainability goals in ways that should drive financial performance for our investors.”
EPA Administrator Michael S. Regan said: “We know it’s going to take all of us working together to tackle the climate crisis, and the 2022 ENERGY STAR award-winning partners are demonstrating what it takes to build a more sustainable future. These companies are showing once again that taking action in support of a clean energy economy can be good not only for the environment, but also for business and customers.”
This achievement adds to LaSalle’s strong track record of ESG best practices and distinctions. Industry organizations continue to recognize LaSalle for ESG leadership and maintaining its distinction as an employer of choice. LaSalle has received the following U.S. and global awards in the past year:
- 14 GRESB-rated funds: 1 five-star and 3 4-star ratings
- American Red Cross Corporate Wesbury Award
- 114 WELL Health-Safety Ratings across Americas portfolio
- P&I Best Places to Work in Money Management (6th year in a row)
About ESG at LaSalle
At LaSalle, our purpose is clear: we deliver investment performance today for a better tomorrow for all our stakeholders. We recognize that ESG has an essential, material influence on investment performance. We tailor our approach to each fund and each asset, working to protect and enhance financial returns today and in the future. We all contribute in different ways and integrate ESG into our processes; it’s part of everything we do.
About ENERGY STAR
ENERGY STAR® is the government-backed symbol for energy efficiency, providing simple, credible, and unbiased information that consumers and businesses rely on to make well-informed decisions. Thousands of industrial, commercial, utility, state, and local organizations—including more than 40 percent of the Fortune 500®—rely on their partnership with the U.S. Environmental Protection Agency (EPA) to deliver cost-saving energy efficiency solutions. Since 1992, ENERGY STAR and its partners helped American families and businesses avoid more than $500 billion in energy costs and achieve more than 4 billion metric tons of greenhouse gas reductions. More background information about ENERGY STAR’s impacts can be found at www.energystar.gov/impacts and state-level information can be found at www.energystar.gov/statefacts.
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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
SINGAPORE (April 25, 2022) — LaSalle Investment Management (“LaSalle”) is pleased to announce it has earned the WELL Health-Safety Rating on 41 logistics and commercial properties in Asia Pacific through the International WELL Building Institute (“IWBI”). They include 8 properties in Australia, 16 properties in China, 16 properties in Japan and one property in Singapore.
The WELL Health-Safety Rating is an evidence-based, third-party verified rating for all new and existing building and space types focusing on operational policies, maintenance protocols, stakeholder engagement and emergency plans to address a post-COVID-19 environment now and into the future. Designed to empower owners and operators across large and small businesses alike to take the necessary steps in order to prioritize the health and safety of their staff, visitors and stakeholders, the WELL Health-Safety Rating can help guide users in preparing their spaces for re-entry in the wake of the COVID-19 pandemic, instilling confidence in those who come through the building as well as the broader community.
Keith Fujii, LaSalle Head of Asia Pacific, said: “By embracing the WELL Health-Safety standard across our Asia Pacific portfolios, we are taking a further step to create a safe and considerate environment for our tenants and their customers. This achievement reiterates LaSalle’s commitment to investing in and managing assets that have a truly positive impact on public health and safety.”
Tom Miller, LaSalle Head of Development and Sustainability, Asia Pacific, added: “We are looking forward to working with IWBI to extend this certification program to many more of LaSalle’s assets in Asia Pacific in the future.”
In order to achieve WELL Health-Safety Rating, the properties implemented features such as improved air and water quality management, health service resources, emergency preparedness programs, enhanced cleaning and sanitation procedures, and increased stakeholder engagement and communication.
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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
JLL (NYSE: JLL) has been recognized for leadership in corporate sustainability by global environmental non-profit CDP, securing a place on its prestigious ‘A List’ for tackling climate change. CDP runs the world’s environmental disclosure system to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests.
JLL was recognized for its actions to cut emissions, mitigate climate risks and develop the low-carbon economy, based on the data reported by the company through CDP’s 2021 climate change questionnaire.
JLL is one of a small number of high-performing companies out of nearly 12,000 that were scored. Through significant demonstrable action on climate, JLL is leading on corporate environmental ambition, action and transparency worldwide.
LaSalle is a wholly owned subsidiary of JLL and is proud to share in this achievement.
Read more about this award on JLL.com
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
LaSalle Investment Management (“LaSalle”) announced that its flagship core real estate fund in Canada, LaSalle Canada Property Fund (“LCPF” or “the fund”), expanded its portfolio with the acquisition of a portfolio of three properties in Toronto in partnership with TAS, an industry leader in impact-driven development and asset management. These acquisitions represent the first phase of a broader 50/50 joint venture between LaSalle and TAS that is targeting to deploy $120 million in capital, inclusive of planned capital expenditures.
The investment exemplifies new opportunities LaSalle is seeing for LCPF within its defined investment guidelines, which is to focus on adaptive re-use, lease-up and stabilization of properties in up-and-coming neighborhoods throughout Toronto. In this particular instance, the investment thesis is underpinned by environmental and social best practices while still delivering attractive overall investment returns for LCPF.
The joint venture’s sustainability initiatives targeted for implementation should improve the acquired properties’ energy efficiency and reduce carbon footprints through adaptive re-use instead of demolition and new construction. The joint venture will also aim to promote social initiatives anchored by the joint venture’s transformation of former industrial buildings into what the joint venture hopes will be lively community hubs in partnership with small businesses, charitable and not-for-profit organizations, some of whom will pay below-market rents.
The three initial acquisitions are:
- 142 Vine Avenue: a 2-story, 19,000-square-foot light industrial property located in the heart of Toronto’s Junction area that will be repositioned to an energy efficient, in-fill flex office asset for commercial, community and arts uses.
- 55 Milne: a 130,000-square-foot light industrial property that was previously a single-tenant manufacturing facility, which will also be repositioned into an energy efficient, community-serving property.
- 772 Warden: Located in the emerging Golden Mile neighborhood with access to public transit, this more than 84,000-square-foot property will retain its light industrial character and include community-serving uses.
The acquisition brings LCPF’s value-add allocation up to 5.5 percent, which is within LCPF’s20 percent value-add cap, and will increase its portfolio on a pro forma basis to approximately $1.8 billion.
John McKinlay, CEO of LaSalle Canada, said: “This is an exciting, unique and worthy acquisition for our core flagship LaSalle Canada Property Fund in that it embodies the application of LaSalle’s key ESG initiatives while simultaneously positioning LCPF for attractive investment returns based on our underwriting. We’re thrilled to partner with TAS, an experienced industry leader in this space, on this project to thoughtfully revive obsolete spaces, enhance neighborhoods and give communities spaces they can use for good.”
Mazyar Mortazavi, President & CEO of TAS, said: “We are proud and excited to drive profit and purpose together with LaSalle through this exceptional portfolio of community hubs. The partnership builds on TAS’s proven track-record of delivering outsized value in emerging Toronto neighborhoods, and will be leveraged to deliver a broad range of impact objectives, including building social capital, expanding affordability and equity, and tackling climate change.”
Mike Cornelissen, Senior Vice President of Acquisitions, added: “There is significant market dislocation in Toronto for repurposing rather than demolishing certain assets, and a tangible opportunity to invest ahead of the path of growth in areas like the Golden Mile and the Junction. This investment thesis capitalizes on that opportunity, with the added benefit of making spaces available for community organizations that can carry out their valuable missions. I strongly believe that with LaSalle and TAS aligned on this project, we can create significant positive impact for both the community and our investors.”
LaSalle Canada Property Fund recently received a 5-star rating in the 2021 Global Real Estate Sustainability Benchmark (GRESB), the highest attainable rating. The GRESB rating is based on a fund’s GRESB Score and its quintile position relative to all participants in the assessment. Those funds in the top quintile are awarded a 5-star rating. It’s the second year in a row the Fund has received a 5-star rating, and it improved its overall score over the prior year.
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 TAS
TAS is an unconventional impact company that promotes connected neighbourhoods and, caring, committed communities. As a Certified B Corporation, TAS is an industry leader in impact development with an active pipeline and portfolio totaling more than 6 million square feet across 18 properties throughout the Greater Toronto and Hamilton Area.
TAS focuses on tackling climate change, expanding affordability and equity, and building social capital to create neighbourhoods – and ultimately cities – where people can thrive and belong. TAS partners with investors to shape and amplify this vision. Join in by visiting tasdesignbuild.com and following our journey on LinkedIn, Instagram, and Twitter.
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
LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, we manage approximately $77 billion of assets in private equity, debt and public real estate investments as of Q4 2021. 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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
LaSalle Investment Management (“LaSalle”) is pleased to announce that five of its funds earned top scores within the 2021 Global Real Estate Sustainability Benchmark (GRESB), a leading global environmental, social and gov-ernance (ESG) measure, recognizing LaSalle’s commitment to ESG performance.
The GRESB Assessment is a globally recognized and respected ESG measure for the real estate industry. In 2021, LaSalle made 14 submissions for the Assessment, comprising a range of commingled funds, its listed REIT in Japan, and three separate account mandates in Europe. All 14 submissions were awarded GRESB Green Stars, a recognition based on high management and performance scores within the GRESB Ratings. Across these submissions, LaSalle achieved five 5-star GRESB ratings, the highest attainable, along with three 4-star and four 3-star ratings, plus two 2-star ratings. In 2020, LaSalle earned one 5-star and five 4-stars.
The GRESB rating is based on a fund’s GRESB Score and its quintile position relative to all participants in the Assessment. Those funds in the top quintile are awarded a 5-star rating.
The LaSalle E-REGI fund was named a regional GRESB Sector Leader in the “Diversified – Office/Industrial” category. Entities with the top GRESB Score, as well as entities with a score within 1 point of the top score in a category, are recognized as Sector Leaders.
The GRESB recognition illustrates LaSalle’s achievement thus far in its global commitment to the Urban Land Institute Greenprint Center for Building Performance Net Zero Carbon (“NZC”) Goal by 2050. LaSalle is putting particular focus on carbon reduction, climate risk, community and resource conservation, including water and waste management and biodiversity.
David DeVos, Global Head of ESG at LaSalle, said: “We are proud that the ESG processes we have put in place are yielding results, as shown through in these GRESB Ratings. ESG has been shown to have a material impact on enhancing and protecting investment performance, which will continue to increase over time. Through our framework, we are able to incorporate sustainability into all stages of the asset life cycle to ensure we identify, develop and manage the type of assets that deliver resilient investment performance.”
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 $77 billion of assets in private equity, debt and public real estate investments as of Q4 2021. 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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
LaSalle Investment Management (“LaSalle”) is pleased to announce it has been named the 2021 Corporate Wesbury Award winner by the American Red Cross’s (“Red Cross”) Greater Chicago Chapter. The award recognizes those who enhance the visibility of the Red Cross by helping deliver their services and messages of health, safety and preparedness.
When the COVID-19 pandemic began in 2020, the U.S. faced a critical blood shortage due to social distancing, stay-home orders and other measures which made it difficult to host blood drives. LaSalle stepped up to help fill this gap by collaborating with the Red Cross to host 29 blood drives in properties across its portfolio. The drives yielded enough blood to save nearly 1,500 lives.
Kristy Heuberger, LaSalle Co-Head of the Americas, said: “We are extremely proud to receive this recognition from the Red Cross. As an organization, we are passionate about making a positive impact on where we live, work and invest. Finding a way to help the community in a time of need speaks volumes about the character of the individuals that make up our firm. We are thankful to our property teams for their assistance in executing these drives and to tenants for their participation. We are also grateful for the opportunity to contribute to the Red Cross’s essential mission, and would like to thank them for their guidance and this recognition.”
Celena Roldán, CEO, Illinois Red Cross, said: “We are proud to honor LaSalle Investment Management with the Chicago Red Cross Corporate Wesbury Award for 2021. During such a challenging year, LaSalle Investment Management was an important partner in securing the life-saving blood donations needed after so many blood drives were cancelled due to the pandemic. We appreciate LaSalle Investment Management hosting blood drives this past year in their properties. We are grateful for our partnership and know the many families that benefited due to the nearly 30 blood drives hosted share our appreciation.”
About the American Red Cross
The American Red Cross shelters, feeds and provides emotional support to victims of disasters; supplies about 40 percent of the nation’s blood; teaches skills that save lives; provides international humanitarian aid; and supports military members and their families. The Red Cross is a not-for-profit organization that depends on volunteers and the generosity of the American public to perform its mission. For more information, please visit redcross.org or cruzrojaamericana.org, or visit us on Twitter at @RedCross.
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 $77 billion of assets in private equity, debt and public real estate investments as of Q4 2021. 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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
Real estate has been at the center of the broader environmental, social and governance (ESG) movement, which includes social and governance priorities alongside environmental ones.
The ESG approach is based on the proposition that investors can improve the world for future generations without sacrificing financial returns.
In fact, there is evidence that under the right conditions, ESG criteria are consistent with superior investment performance. An ESG approach to investing is likely to offer many favorable opportunities for LaSalle and our clients.
With contributions from colleagues around the world, we recently published an ESG briefing note with macro perspective and market-level nuance.
Download the report
LaSalle Investment Management is pleased to announce that it has hired two new leaders to further accelerate the firm’s ESG initiatives. David DeVos has been appointed Global Head of ESG, and Elena Alschuler has joined the firm as Vice President of Sustainability in the Americas.
In his role, David will be responsible for building on LaSalle’s global ESG strategy and objectives, while driving program execution in partnership with the firm’s regional Sustainability Officers, senior leadership and portfolio stakeholders. His oversight will include specific ESG programs, such as the firm’s initiatives on climate change and health and wellness, in addition to playing a central role in the LaSalle’s reporting activities for clients and industry benchmarks. He will report to LaSalle Global Chief Operating Officer Tim Kessler.
Prior to joining LaSalle, David worked for PGIM Real Estate as the firm’s Chief Sustainability Officer where he led efforts to secure numerous sustainability achievements and designations across a wide-ranging, diversified portfolio. Prior to PGIM, David worked in architectural and sustainability-focused roles for Kohl’s Department Stores. As a result of the programs, efforts and achievements during his tenure, Kohl’s was recognized within Newsweek’s Green Rankings, as #1 Green Retailer. He has a double Bachelor’s degree in Environmental Design and Architecture from the University of Minnesota, and an MBA from The Lake Forest Graduate School of Management.
Elena Alschuler will partner with David and act as a central leader for LaSalle’s North America sustainability initiatives.
She will work closely with the firm’s Portfolio Management team on sustainability strategies, as well as its Asset Management group to develop programs for property-level initiatives, including certifications, efficiency projects, energy procurement, green leases, and health & wellness projects. She will report to Kristy Heuberger, LaSalle’s Head of U.S. Asset Management.
Elena joins LaSalle from View Inc., where she led real estate activities including the firm’s strategy and execution to scale adoption of smart glass in the office and multifamily sectors across the US and Canada. Prior to View Inc., Elena worked at the US Department of Energy in Washington, DC as a Building Technologies Project Manager, as well as the MIT Department of Urban Studies & Planning in Cambridge, Massachusetts, and HR&A Advisors in New York. She has a Bachelor’s degree from Bard College, and a Masters in City Planning from MIT.
Tim Kessler, Global Chief Operating Officer of LaSalle, commented: “We are pleased to welcome David and Elena to their roles as we expand our commitment to ESG leadership. We believe that integrating ESG best practices into our day-to-day work is the most efficient method to maximize investment performance for our clients while minimizing our impact on the environment. We look forward to David and Elena’s contributions to grow our broader ESG program and portfolio performance in the years ahead.”
David DeVos, Global Head of ESG at LaSalle, commented: “I am thrilled to be joining LaSalle, and look forward to helping advance the firm’s ESG programs around the world. LaSalle has a strong foundation to build from, and I am excited to partner with our teams around the world to drive long-term, sustainable value for our clients, partners and colleagues.”
David and Elena’s roles will complement LaSalle’s existing Sustainability Officers and teams around the world, led by Sophie Carruth in Europe, Tom Miller in Asia Pacific, Steve Ralff for LaSalle Securities, and Katie Jowett for LaSalle Global Partner Solutions. For more than 10 years, LaSalle has been a leader in real estate ESG initiatives, highlighted by the firm’s recent GRESB and UNPRI ratings for 2020, available here.
These achievements follow LaSalle’s announcement of its global commitment to the Urban Land Institute’s Greenprint Center for Building Performance Net Zero Carbon (“NZC”) Goal and becoming a signatory to the UK Better Buildings Partnership Climate Change Commitment, setting out LaSalle’s ambition for the European portfolio to achieve NZC by 2050 for both whole building operational carbon and embodied carbon. For additional in Read more about LaSalle’s ESG policies and achievements by visiting www.lasalle.com/impact.
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 $77 billion of assets in private equity, debt and public real estate investments as of Q4 2021. 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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
LaSalle Investment Management (“LaSalle”) is pleased to announce it earned top scores on two industry-recognized global environmental, social and governance (ESG) benchmarks for asset managers, underscoring its commitment to sustainability and measures to reduce carbon emissions.
Within the 2020 Global Real Estate Sustainability Benchmark (GRESB), six of the firm’s commingled funds, its listed REIT in Japan, and two separate account mandates in Europe have been recognized for ESG performance. Across these nine submissions, the firm achieved one 5-star, five 4-Star and three 3-star GRESB Ratings. GRESB said its assessment structure fundamentally changed this year, with a new baseline for performance measurement, and that a comparison between absolute scores for 2020 and previous years was not meaningful.
LaSalle commingled products recognized within the 2020 GRESB include:
- LaSalle Canada Property Fund
- Encore+
- LaSalle Asia Opportunity Fund V
- LaSalle Logiport REIT
- LaSalle Property Fund
- LaSalle E-REGI
- JLL Income Property Trust
LaSalle also achieved very positive results on its 2020 United Nations ‘Principles for Responsible Investment’ (UN PRI) Assessment Report, including the addition of a new category for indirect property on behalf of LaSalle GPS with a perfect score and A+ rating.
LaSalle UN PRI Assessment Report results include:
- Strategy & Governance: A+ for a fifth straight year
- Listed Equity – Incorporation: A
- Listed Equity – Active Ownership: A, up from B the previous year
- Property: A+
- Indirect Property: A+
Jeff Jacobson, Global CEO at LaSalle said: “I am pleased to see our continued focus on sustainability being recognized by leading industry benchmarks like the GRESB and UN PRI ratings. We remain committed to becoming a more sustainable organization through our internal operations and across the portfolios we manage, while achieving superior investment performance for our clients.”
These recent achievements follow LaSalle’s announcement of their global commitment to the Urban Land Institute’s Greenprint Center for Building Performance Net Zero Carbon (“NZC”) Goal and becoming a signatory to the UK Better Buildings Partnership Climate Change Commitment, setting out LaSalle’s ambition for the European portfolio to achieve NZC by 2050 for both whole building operational carbon and embodied carbon.
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/.
About the PRI
The PRI is the world’s leading proponent of responsible investment. It works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole. The PRI encourages investors to use responsible investment to enhance returns and better manage risks, but does not operate for its own profit; it engages with global policymakers but is not associated with any government; it is supported by, but not part of, the United Nations. For more information about UN PRI and its ESG benchmarking and reporting for real estate, please visit https://www.unpri.org/.
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 $77 billion of assets in private equity, debt and public real estate investments as of Q4 2021. 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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
LaSalle Investment Management (“LaSalle”) is pleased to announce the establishment of the LaSalle Real Estate Scholarship for Black and Latino/a students. The scholarship program establishes a five-year, $100,000 per year commitment to provide rising Black and Latino/a college sophomores the opportunity to receive $10,000 toward their education. It will also include programmatic mentorship meetings with LaSalle executives designed to educate the scholarship recipient on careers in real estate investment management and the real estate industry in general.
The ultimate goal of the Program is to provide the recipients with the opportunity to apply for an internship at LaSalle, and with the express objective of being well-prepared to seek opportunities for full-time employment in the real estate sector upon graduation.
LaSalle is initially partnering with four academic institutions, including some of the top Historically Black Colleges and Universities (HBCU) in the U.S.:
- Roosevelt University
- Morehouse College
- Spelman College
- Florida A&M University
LaSalle plans to expand its partnerships with HBCUs and other academic institutions in the years ahead.
Students who receive the scholarship will have a minimum 3.0 GPA and will be required to attend four quarterly meetings, either virtually or in-person, including an investment committee meeting and a quarterly townhall. Additionally, each student will be matched with a senior leader of the firm, who will provide mentorship and help guide them through an introduction to the real estate profession.
Jason Kern, LaSalle Chief Executive Officer of the Americas, said: “It is our strong belief that racial and all other forms of diversity at all levels of our organization, and in society at large, will lead to a better future. As a whole, the real estate and financial services industry has lagged its peers, but at LaSalle we pride ourselves on being at the forefront of positive, meaningful change in the diverse makeup of our industry.”
Alfreda Delle, Deputy Portfolio Manager of LaSalle Property Fund, added: “Providing Black and Latinx students the opportunity to gain exposure to real estate and financial services professions at a young age is critical to expanding their career opportunities. These professions have historically not been seen as accessible to these populations, and with this scholarship, we’re putting the institutional strength and resources of LaSalle behind an effort to change that.”
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 $77 billion of assets in private equity, debt and public real estate investments as of Q4 2021. 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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
LaSalle Investment Management (“LaSalle”) today announced it is supporting the American Red Cross by hosting blood drives across its U.S. property portfolio through 2021. This is especially important as hospitals resume surgical procedures and patient treatments that were temporarily paused earlier this spring in response to the COVID-19 pandemic.
This initiative aligns with LaSalle’s broader ESG program, which focuses in part on supporting the communities in which it operates. The collaboration intends to roll out blood drives at approximately 70 LaSalle properties across the U.S. through 2021. This represents the first time a national commercial real estate business has teamed up to provide use of space across multiple buildings for blood drives to advance its lifesaving mission at scale.
Jason Kern, Americas CEO at LaSalle Investment Management, said: “This innovative collaboration with the American Red Cross is a terrific demonstration of our ESG program in action. We are able to use our national infrastructure to help replenish the blood supply that is essential to saving lives. The need is especially important now, as the COVID-19 crisis has disrupted blood donations. We’re honored to work with the Red Cross and take the lead on behalf of the commercial real estate industry to support this cause and look forward to lending our ongoing support.”
Kamenna Lee, Vice President Biomedical Services Marketing at American Red Cross, added: “Due to the closure of college campuses, schools and many businesses moving to work-from-home operations amid this pandemic, the Red Cross has seen a significant decrease in blood donations from locations where we ordinarily collect 80% of our blood supply. We are grateful for the support of organizations like LaSalle who have stepped up to offer new donation opportunities where donors can make the lifesaving gift of blood. LaSalle will allow tenants and residents at its properties to make blood donations in a familiar environment, helping save lives in such a critical time.”
The blood drives hosted at LaSalle properties will launch in the third quarter of 2020. Individuals interested in donating blood must present either an American Red Cross donor ID card or an acceptable primary form of ID, additional eligibility criteria apply. For more information on requirements and blood donations, please visit www.redcrossblood.org.
About the American Red Cross
The American Red Cross shelters, feeds and provides emotional support to victims of disasters; supplies about 40 percent of the nation’s blood; teaches skills that save lives; provides international humanitarian aid; and supports military members and their families. The Red Cross is a not-for-profit organization that depends on volunteers and the generosity of the American public to perform its mission. For more information, please visit redcross.org or cruzrojaamericana.org, or visit us on Twitter at @RedCross.
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 $77 billion of assets in private equity, debt and public real estate investments as of Q4 2021. 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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
What real estate investors should know
In recent years, many institutional investors have embraced the principles of responsible investing (PRI)(1) in order to shape a sustainable global financial system.
These principles seek explicit and measurable approaches to the adoption of Environmental, Social and Governance (ESG) standards in investment decisions and active ownership of assets. As a natural extension of the PRI, the field of “ethical investing” has grown quickly, as evidenced by rising capital allocations to vehicles that include ethical criteria [see Chart 1]. When these considerations are combined with financial criteria, the investment can be considered part of the growing universe known as “Impact investing”.
Impact investing refers to investments made with the specific intention to generate a measurable, beneficial social and/or environmental impact alongside a financial return. This rapidly evolving investment practice relies on the concepts of intentionality and additionality, the notion of generating a positive impact beyond what would otherwise have occurred. At its core, impact investing include procedures for reporting and accountability that ensure strategy and practice are aligned with both societal goals and financial objectives. Whilst impact investing is a natural progression from ESG adoption [see Chart 2], we firmly believe that there should be a clear distinction between the two. ESG standards can be integrated into any investment process to ensure investments are socially, environmentally and ethically responsible. Impact investing goes one step further and includes the achievement of positive social and environmental outcomes as measures of success, in addition to financial criteria and meeting minimum standards for ESG. Growing academic evidence supports the idea that “ESG incorporation does not come at a cost”2. The academic literature on “impact investing” is still in its infancy, although financial economists have surveyed the definitions used by the first wave of “impact investing products” and found them to be remarkably consistent in terms of their emphasis on intentionality, financial returns, and impact measurement across a wide range of asset classes3.
[1] The PRI website introduces the principles for responsible investment here: https://www.unpri.org/
[2] See “What is the PRI?” https://www.unpri.org/
[3] Höchstädter, A.K, and Scheck, B. (2015) What’s in a Name: An Analysis of Impact Investing, Understandings by Academics and Practitioners. Journal of Business Ethics 132 (2), pp 449-475.
Download the report
LaSalle Investment Management (“LaSalle”) is pleased to announce it has earned high marks across two industry-recognized global environmental, social and governance (ESG) benchmarks for asset managers, and has formally expressed its support for the Task Force on Climate-related Financial Disclosures (TCFD).
Within the 2019 Global Real Estate Sustainability Benchmark (GRESB), six of the firm’s commingled funds, its listed REIT in Japan, and three separate account mandates across Asia, Europe, and North America have been recognized for environmental sustainability. Across these 10 submissions, the firm achieved one 5-star, six 4-Star and three 3-star GRESB Ratings. In order to achieve a Green Star, a GRESB Assessment participant must meet score thresholds in both Management & Policy as well as Implementation & Measurement categories. With these results, LaSalle is in aggregate experiencing meaningful year-over-year improvements in both segments relative to 2018 results.
LaSalle products recognized within the 2019 GRESB include:
- Encore+
- JLL Income Property Trust
- LaSalle Asia Opportunity Fund V
- LaSalle Canada Property Fund
- LaSalle E-REGI
- LaSalle Logiport REIT
- LaSalle Property Fund
Additionally, two of LaSalle’s separate accounts based in France and a U.S.-managed separate account mandate were also recognized by GRESB for their performance in these areas.
LaSalle also achieved favorable results from its 2019 United Nations ‘Principles for Responsible Investment’ (UN PRI) Assessment Report, maintaining the strong relative performance since becoming an official signatory of the program in 2009. The UN PRI Assessment Report is a key global benchmark that assesses asset managers’ ESG integration into decision making and ownership practices. The assessment reviewed over 1,000 participants, including all major global asset managers who complete a Strategy & Governance module and modules specific to their sector.
LaSalle UN PRI Assessment Report results (relative to median real estate industry score):
- Strategy & Governance: A+ (median: A)
- Listed Equity – Incorporation: A (median: B)
- Listed Equity – Active Ownership: B (median: B)
- Property: A+ (median: B)
LaSalle has also formally expressed its supporter for the Task Force on Climate-related Financial Disclosures (TCFD), joining a cohort of over 800 leading companies that take action against climate change and are thoughtful to consider how climate change will impact their businesses. LaSalle continues to develop the tools and indicators required to assess exposures to the risk and opportunities presented by climate change.
Eric Duchon, Global Head of Sustainability at LaSalle commented: “I am pleased with the continued progress of our assets and portfolios in relation to our overall ESG and climate-related objectives, as evidenced by the advancement of our GRESB and UN PRI ratings and support for the TCFD. In tandem with the focus of driving investment performance for our clients, we remain committed to improving levels of sustainability, transparency and corporate governance across our business, and are dedicated to making a positive impact on the communities where we operate around the world.”
These recent achievements add to LaSalle’s track record of ESG best practices and distinctions. Clients and industry organizations continue to recognize LaSalle for ESG leadership and maintaining its distinction as an employer of choice. LaSalle has received the following awards and designations within the last 24 months:
- 2019 Energy Star Partner of the Year Award
- 2019 Green Lease Leaders
- Energy Star Charter Tenant
- P&I Best Places to Work in Money Management
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 complete 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/.
About the PRI
The PRI is the world’s leading proponent of responsible investment. It works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole. The PRI encourages investors to use responsible investment to enhance returns and better manage risks, but does not operate for its own profit; it engages with global policymakers but is not associated with any government; it is supported by, but not part of, the United Nations. For more information about UN PRI and its ESG benchmarking and reporting for real estate, please visit https://www.unpri.org/.
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 $77 billion of assets in private equity, debt and public real estate investments as of Q4 2021. 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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.
No results found
LaSalle Investment Management (“LaSalle”) today published the findings of a comprehensive survey that examines how environmental, social and governance (“ESG”) concerns factor into institutional real estate investors’ decisions. The survey was administered by Private Equity Real Estate (“PERE”), to 60 institutional investors between March and June 2019. While the majority of respondents confirm that ESG plays a role in their investment decision making, the findings reflect clear regional differences in ESG attitudes.
The full report can be downloaded at: http://lasalle.com/impact
On a global level, more than one-third of respondents expressed that ESG plays a major role in their capital allocation decisions. Europe continues to build upon its track record for being the most sustainable-focused region, with 45 percent of respondents admitting that ESG plays a major role in their investment decisions. Conversely, in North America, nearly one-third of respondents consider ESG principles a factor of secondary or tertiary importance, while 25 percent of respondents assert that it plays a major role. Asia-Pacific respondents demonstrated mixed feelings about ESG policy, displaying a nearly balanced sentiment.
Eric Duchon, Global Head of Sustainability at LaSalle, commented, “This report shows that ESG is not simply a buzzword or passing trend. ESG initiatives have become more central to real estate investment strategies, and these policies are increasingly driving institutional investors’ decisions. We believe that it is essential for investment managers to have a well-constructed and properly implemented ESG policy in place in order to raise capital. While some of the geographic and sector-specific disparities uncovered in the report demonstrate that there is still much work to be done, the bottom line is that ESG is no longer a ‘nice-to-have.’ It is a moral imperative and fiduciary duty for private investment managers.”
Reflecting an increased focus on ESG factors, 70 percent of the survey’s respondents professed to having an explicit ESG policy in place while 86 percent deemed it important for managers to evidence a clear ESG policy at due diligence. Interestingly, however, many respondents admit that it is difficult to correlate a manager’s ESG policy to actual investment returns. In fact, only 6 percent find this an easy exercise, while 45 percent do not bother with this analysis at all. These findings suggest that more needs to be done to develop a clear methodology that allows investors to assess the value ESG delivers to the bottom line.
The survey also found disparity toward ESG commitment relating to different real estate sectors. For instance, investments into office space have made the greatest strides, with 80 percent of respondents reporting moderate or significant progress. On the other hand, 48 percent of respondents have experienced little or no progress with retail investments. Importantly, investors are optimistic about the value versus cost of ESG policy implementation: 43 percent believe the value of ESG is greater than the cost of implementation, with a further 12 percent stating that the value is on par. Just 6 percent of investors consider the cost of implementation to outweigh the value.
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 $77 billion of assets in private equity, debt and public real estate investments as of Q4 2021. 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.
Company news
Mar 12, 2025
JLL recognized as one of the World’s Most Ethical Companies®
JLL has been named to the list every year since 2008.
Feb 11, 2025
Kunihiko Okumura and Steve Hyung Kim appointed Asia Pacific leaders
Keith Fujii to assume the role of Chairman of Asia Pacific, with all changes to be effective July 1, 2025.
Jan 30, 2025
LaSalle and Deeley Freed obtain planning permission for Bristol shopping centre redevelopment
Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.