ISA 2021 OVERVIEW
In the 27th edition of the Investment Strategy Annual, we address the themes that will shape the real estate investment environment for the next three years and likely longer. Some assets and strategies amplify these trends and will deliver “high beta”, others are much more insulated from all the noise and should be considered “low beta”.
Mastering the simultaneous need for fast/intuitive and slow/careful thinking becomes an important skill to develop in the speeding-up world of real estate. 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.
The Case for Real Estate in 2021
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.
2020 has been a harrowing year. The first half of 2021 is also likely to be very challenging. Real estate owners and operators will continue to be on the front lines coping with the pandemic and its aftermath. Fortunately, the immediate impairment to property income streams is much less severe than initially feared. Unfortunately, the public health ramifications for vulnerable populations and healthcare workers is much worse than predicted in some of the largest countries in the West. Currently, the successful containment of COVID-19 in the largest Asia Pacific countries has not been replicated in either Europe or the Americas.
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LaSalle 2021–23 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.