Research & Reports

Investment Strategy
Annual 2020

The ISA, LaSalle’s flagship research report, is a global overview of real estate investment strategy for the years to come. This annual report compiles views from around the world on macro real estate investment themes, local market forecasts, recommended investment strategies, and key market risks. It provides insight on portfolio construction and the trends shaping real estate investment and the increasing value of the capacity for advanced data analytics to guide real estate investment decisions.

  • 26
    Years of Investment Strategy Annual Publications
  • 2020-22
    Years covered in forecast
  • 16
    Countries analyzed and researched in this edition

ISA 2020 OVERVIEW

In the 26th- edition of the Investment Strategy Annual, we address the five themes that will shape the real estate investment environment for at least 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, in a slowing-down economy. 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.

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The Case for Real Estate in 2020

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.

The macro outlook for 2020 indicates that the global economy will be slowing, which means that rent growth, leasing and other drivers of real estate income could downshift to a lower gear. Yet, slow growth means that interest rates could also stay low and contribute to elevated asset valuations.

Meanwhile, the pace of structural change could ramp up, as technology acts simultaneously as a disruptor and an accelerator to both economic and social trends.

LaSalle 2020–22 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.