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Jacques Gordon comments on headwinds, tailwinds and secular changes
Investors - FEBRUARY 3, 2020

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Jacques Gordon comments on headwinds, tailwinds and secular changes

by Larry Gray

The real estate asset class has produced a strong performance during the past seven to eight years, supported by slow and steady economic growth, low interest rates, and active capital markets. But what does the landscape look like as we launch into 2020 and a new decade?

A number of macro themes will shape the outlook for the year ahead and the new decade, according to Jacques Gordon, global head of research and strategy at LaSalle Investment Management.

“As we look ahead to the next three years, it’s going to be much more balanced, headwinds and tailwinds,” said Gordon.

Gordon identified three headwinds for the real estate asset class: i) a slowing economy, ii) the fact that real estate is starting from very high valuation levels, which will make it difficult to reproduce recent capital appreciation and total returns, and iii) the fast pace of technological change, which continues to surprise, disrupt and hurt property income streams.

But, Gordon

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