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Jones Lang LaSalle Offers Investment Strategies for 2006

CHICAGO-Despite declining capitalization rates, prices for commercial real estate are not so outrageous when compared to appreciation of homes in hot residential markets or the NASDAQ, according to LaSalle Investment Management.

By Mark Ruda | Updated on January 05, 2006

(To read more on the debt and equity markets, click here.)

CHICAGO-While LaSalle Investment Management does not see any bubbles on the horizon for commercial real estate, investors will need to take on greater risk to boost returns. “When viewed through the twin lenses of the broader capital markets and 25 years of history, however, current pricing does not seem so outrageous,” authors of the firm’s Investment Strategy Annual note.

While hard charging price appreciation in most housing markets has fueled talk of a real estate bubble, LaSalle Investment Management’s report dismisses the notion commercial real estate sectors are in jeopardy of bursting. The firm’s research shows that while home prices in Miami have taken off in recent years, the NASDAQ still is running ahead of REIT prices as well as the private real estate market.

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