Expanding Their Universe
If commercial real estate investors want to continue to perform well in 2007, they must consider expanding their universe of options. That’s the findings of the 13th annual edition of LaSalle Investment Management’s Investment Strategy Annual, a comprehensive survey of, and outlook for, the global real estate markets for 2007.
“Real estate investors must expand their horizons in 2007,” said Jacques Gordon, LaSalle Investment Management’s International Director, Global Strategist and co-author of Investment Strategy Annual. “Although capital pressure will remain intense for stable assets in large markets, investors should not count on further yield compression to drive future returns. Rather, their focus should be on rental income growth—either through leasing and development or through market selection. Nontraditional sectors and a broader mix of countries will be needed to maintain higher returns in a post-compression era. That’s why we’re urging investors to consider adding development strategies, cross-border assets and niches driven by long-term trends over the coming year.”
In the U.S., LaSalle is recommending that investors take a look at the following investment themes and real estate opportunities: