{"id":1004784258,"date":"2026-01-20T04:08:38","date_gmt":"2026-01-20T12:08:38","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004784258"},"modified":"2026-01-23T02:41:37","modified_gmt":"2026-01-23T10:41:37","slug":"lasalle-im-why-2026-feels-like-groundhog-day-for-cre-investing","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/lasalle-im-why-2026-feels-like-groundhog-day-for-cre-investing\/","title":{"rendered":"LaSalle IM: Why 2026 Feels Like \u2018Groundhog Day\u2019 for CRE Investing"},"content":{"rendered":"
\n
\"A<\/a>
Global commercial real estate investment volumes, which saw a modest recovery last year. Chart courtesy of LaSalle Investment Management<\/em><\/figcaption><\/figure><\/div>\n\n\n

Commercial real estate investment going into 2026 <\/a>feels like the start of a new cycle, with distinct causes for both optimism and concern. If these sentiments sound similar to those held by many in the industry at the start of 2025, it\u2019s because they are.<\/p>\n\n\n\n

Leadership at LaSalle Investment Management<\/a> expressed these feelings of d\u00e9j\u00e0 vu at a Jan. 16 press conference, having previously forecasted a new dawn<\/a> for commercial real estate investing at the start of 2025. But while some major themes have carried over, there are some distinct trends that set this year apart.<\/p>\n\n\n\n

Breaking the cycle<\/h2>\n\n\n\n

Both lingering and acute economic and geopolitical uncertainty, a slowdown of new construction and rising vacancy rates are causes for concern, while strong capital raising numbers and steady appraisal metrics for most asset classes are reasons to be optimistic. <\/p>\n\n\n\n

\u201cIt feels like Groundhog Day, where we\u2019re stuck in this loop of optimism and disappointment,\u201d said Brian Klinksiek, the firm\u2019s global head of research & strategy, in reference to the 1993 comedy starring Bill Murray.<\/p>\n\n\n\n

Movie references continued throughout the discussion, with Klinksiek referring to a dreaded stagflation scenario as a \u201cphantom menace\u201d that stalks the global economy, a nod to the first Star Wars prequel. While there\u2019s no economic data to suggest that a recession-inflation combination is imminent or likely to occur, the uncertainty emanating from the Trump administration\u2019s economic policies<\/a>, particularly around trade, don\u2019t exactly make a forecast easy.<\/p>\n\n\n\n

\n\n\n\n

READ ALSO:<\/strong> 3 Economic Trends to Watch in 2026<\/a><\/p>\n\n\n\n

\n\n\n\n

The most likely scenario for commercial real estate, according to Klinksiek, is a later and slower recovery for most asset classes. \u201cExpectations of a steep recovery are likely to not be met,\u201d Klinksiek predicted.<\/p>\n\n\n

\n
\"An<\/a>
An industry-wide forecast of revenues per square foot. Chart courtesy of LaSalle Investment Management<\/em><\/figcaption><\/figure><\/div>\n\n\n

Consensus-driven data from Green Street forecasts a sector-wide average recovery to nearly $125 per square foot, a 4 percent increase from 2025. But any recovery is contingent on positive supply fundamentals, which can only be driven by rent increases. \u201cThis is the foundation for a recovery of new fundamentals,\u201d Klinksiek said.<\/p>\n\n\n\n

Red light, green light<\/h2>\n\n\n\n

If and when a recovery does occur, not all sectors will fare equally. The firm sees industrial outdoor storage<\/a> and affordable housing as investment priorities. \u201cJust about every market needs affordable housing, and here is opportunity to grow rents modestly over time,\u201d said Richard Kleinman, the firm\u2019s chief investment officer for its Americas Region.<\/p>\n\n\n\n

Logistics, self storage, medical offices, transitional lending and ground-up development occupy a sort of middle ground, having both attractive and selectively attractive value, driven mainly by vacancy rates. For the time being, LaSalle is skipping office, life science and data centers, seeing them as too volatile to allocate capital toward.<\/p>\n\n\n

\n
\"A
Vacancy rates by property type, with projections ranging out to 2028. Chart courtesy of LaSalle Investment Management<\/em><\/figcaption><\/figure><\/div>\n\n\n

Downstream of demand is asset quality, which Tara McCann, head of Americas investor & consultant relations describes as being driven by a combination of positioning, managers and cash flows.<\/p>\n\n\n\n

For its part, LaSalle is focusing on more income-driven assets, rather than those that will appreciate in value long term.  \u201cHopefully, we\u2019ll see a return everywhere, but that is contingent on capital,\u201d McCann said.<\/p>\n","protected":false},"excerpt":{"rendered":"

It’s not quite a repeat of 2025, but there are a lot of common themes. Here’s how the firm has adjusted its strategy.<\/p>\n","protected":false},"author":3012,"featured_media":1004784495,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21748,21783,23891,21742,21747,51037],"tags":[52777,33722],"class_list":["post-1004784258","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-industrial","category-investment","category-national","category-latest","category-office","category-trends","tag-green-street","tag-lasalle-investment-management"],"acf":[],"yoast_head":"\nLaSalle IM: Why 2026 Feels Like \u2018Groundhog Day\u2019 for CRE Investing - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Commercial real estate investment going into 2026 feels like the start of a new cycle, with distinct causes for both optimism and concern.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/lasalle-im-why-2026-feels-like-groundhog-day-for-cre-investing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"LaSalle IM: Why 2026 Feels Like \u2018Groundhog Day\u2019 for CRE Investing\" \/>\n<meta property=\"og:description\" content=\"Commercial real estate investment going into 2026 feels like the start of a new cycle, with distinct causes for both optimism and concern.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/lasalle-im-why-2026-feels-like-groundhog-day-for-cre-investing\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2026-01-20T12:08:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-01-23T10:41:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/01\/Direct-global-investment-volumes.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"935\" \/>\n\t<meta property=\"og:image:height\" content=\"701\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gabriel Frank\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/lasalle-im-why-2026-feels-like-groundhog-day-for-cre-investing\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/lasalle-im-why-2026-feels-like-groundhog-day-for-cre-investing\/\",\"name\":\"LaSalle IM: Why 2026 Feels Like \u2018Groundhog Day\u2019 for CRE Investing - 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