ISA 2019 OVERVIEW
In the 25th edition of the Investment Strategy Annual, we address the perennial cycle question and share our ideas for constructing portfolios with "low beta" and "positive alpha" characteristics, capable of weathering downturns and then thriving in a recovery.
In the 2019 ISA, we describe the three scenarios that investors are most likely to encounter in 2019 to 2021 and how to prepare for them. We review techniques to help investors determine portfolio objectives. We present our outlook for the property types and countries that are the most attractive. We share our best investment ideas. Finally, we re-cap the contributions we have made to the evolution of real estate’s accepted status as an asset class and look back over our 25 year ISA history and the trends shaping the professionalization and globalization of real estate investment management.
The Case for Real Estate in 2019
LaSalle has made many contributions to the evolution of real estate’s accepted status as an asset class and the case for real estate in a portfolio.
Commercial real estate markets, the broader capital markets, and economic conditions are dynamic. Nevertheless, the core principles underpinning an allocation to real estate remain largely unchanged. The fundamental reasons for owning real estate in a mixed-asset portfolio in 2019 are: Competitive Returns, Diversification, Lower Volatility, Opportunity for Alpha Generation, Inflation Protection and Market Size
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LaSalle 2018–19 Real Estate Universe
Defining the Real Estate Universe
PUBLIC REAL ESTATE
The gross asset value of real estate owned by REITs and REOCs listed on public exchanges. Includes vertically integrated development companies in emerging markets but not exclusive homebuilders.
INSTITUTIONAL-INVESTED REAL ESTATE
The unleveraged total value of all professionally managed real estate portfolios, both public and private.
TOTAL INCOME-PRODUCING REAL ESTATE
Total commercial (office, retail, industrial, alternatives) and rented residential buildings. Owner-occupied residential homes are not included.