CHICAGO—Globally, both overseas and domestic investors are likely to expand their real estate allocations, according to LaSalle Investment Management. The Chicago-based firm just released its Mid-Year 2015 Investment Strategy Annual report, and found that with a steady, cyclical recovery underway around the world, and with interest rates remaining lower for longer, benchmark bond and real estate debt costs remaining low, real estate continues to be attractive. Furthermore, demographics, technology and urbanization continue to drive demand for space in specific areas.

Real estate will have advantages over other investment options due to “the stable income produced by core assets generating yields at a healthy premium to sovereign and corporate bonds,” the firm found, among other reasons.

“At the end of last year, we identified the cyclicality of real estate as our main theme,” said Jacques Gordon, LaSalle Investment Management's global head of research and strategy. “Since then, a number of the cyclical trends have played out even faster and more intensely than we gave them credit for.”