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Brian Klinksiek, LaSalle’s global head of research and strategy, was a guest on the latest edition of the Nareit REIT Report podcast.
Klinksiek said REITs are in a position to play a consolidator role in the market, given their access to capital, improving valuations, and operational advantages.
“We've been framing the outlook for REITs as, 'Are we at the dawn of the next REIT golden era?' We think the answer is probably yes,” Klinksiek said.
Historically, periods that follow a reset in financial conditions have been good moments to invest in REITs and real estate, “and there’s no reason to assume this period will be different,” he said.
Klinksiek also discussed some of the key themes of LaSalle’s mid-year 2024 outlook. They include:
- Willingness to take risk in the current market, before the ‘all clear’ signal sounds, is key.
- Moderation in capital market volatility is expected to put real estate markets on a firmer footing later this year and into 2025.
- Investors should take a granular view of market conditions, particularly with respect to supply issues. Generally, new construction starts are below historical averages.
- Secular themes driving real estate investment opportunities today include a bifurcation of assets based on quality, supply chain duplication, and innovation.