January 2022 - Retrospective Indicators & Prospective Trends
January 2022 Retrospective Indicators & Prospective Trends As capital market volatility rises and the pandemic enters its third year, the role of strategy is especially important to set a course and to stay on track. The macro themes in the 2022 edition of LaSalle’s Investment Strategy Annual are summarized in our first macro deck of the new year. These five trends provide a road map for navigating real estate markets around the world in the years ahead. Prepare for the Endemic Economy. Expect Rising Liquidity and Inflation. Anticipate Higher Standards. Plan for Climate Change. Take the Long View. High expectations for real estate are tempered by realism and resilience born from a rare combination of uncertainty and extremes in 2021: wildly exceeding expectations in some areas (rebounding spending and asset returns) and deeply disappointing in others (pandemic disruption, bottlenecks, and inflation). Many real estate investors experienced a year of outcomes better than last year’s consensus expectations. Rent and NOI growth for residential, logistics, and several niche property types set new records in many countries as a rapid demand rebound blew past the supply of space available. Asset returns surged. Global stock markets gained 20% in 2021 Jacques Gordon - Global Strategist Dan Mahoney - Managing Director