LaSalle Investment Management sees considerable differences between this upcoming cycle and prior ones across U.S. and Canadian real estate. The landscape for U.S. and Canadian real estate has shifted since last year’s ISA Outlook 2024, which saw lower transaction volumes due to higher interest rates and challenging macroeconomic conditions.
Specifically, interest rates are expected to remain higher, which will lead to a more moderate pace of value recovery. And while the pace of capital flows to real estate is expected to pickup in 2025, conditions across real estate sectors and markets will remain uneven, which the firm has said for its 2025 outlook.
“We are on the cusp of a new real estate cycle both globally and in the Americas specifically. That said, navigating the current environment will require selectivity at the sector, market and submarket levels,” says Richard Kleinman, LaSalle’s Americas head of research and strategy.
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