July 25, 2017
Real estate market fundamentals in North America performed in line with expectations during the first half of 2017, with a few variations, primarily in the U.S. Chicago-based LaSalle Investment Management’s Mid-Year Investment Strategy Annual 2017 found the U.S. and Canadian real estate markets continue to attract investor interest despite these trends.
Among the key issues impacting the market are:
- the pace of change within the retail sector
- the sharper-than-expected slowdown in transaction volume
- the sustained political turbulence
- slower-than-expected progress on key policy initiatives
The report also reinforces the case for adding environmental factors as a secular driver of real estate demand. LaSalle does not see the U.S. pull-out from the Paris climate treaty affecting the long-term importance of these “E-factors.”
While the U.S. real estate market remains healthy, this trend is a reversal from the strong growth of the past six years. The report shows that capital flows to U.S. real estate are above long term levels, but decelerating.
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