LaSalle E-REGI Index 2017 · LaSalle Investment Management | LaSalle E-REGI Index 2017 4 LaSalle E-REGI Index § Launched in 2000 - 2017 is the 18th edition of the LaSalle E-REGI
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LaSalle Investment Management | LaSalle E-REGI Index 2017 1
LaSalle E-REGI Index 2017EUROPEAN REGIONAL ECONOMIC GROWTH INDEX
LaSalle Investment Management | LaSalle E-REGI Index 2017 2
01 METHODOLOGY
02 2017 RESULTS
03 THE CONSISTENT: KEY TARGET MARKETS
04 THE AFFLUENT: SOLID BUT EXPENSIVE
05 THE MOVERS: EITHER RECOVERING OR STRUCTURALLY IMPROVING
06 THE ASPIRING: ATTRACTIVE BUT FEW TRANSPARENT MARKETS
LaSalle Investment Management | LaSalle E-REGI Index 2017 3
1. Methodology
LaSalle Investment Management | LaSalle E-REGI Index 2017 4
LaSalle E-REGI Index
§ Launched in 2000- 2017 is the 18th edition of the LaSalle
E-REGI index
§ Shows relative economic performance- compared to the European average
§ Europe-wide coverage- 32 countries- 295 European regions- Focus on 100 cities
§ Strong relationship with real estate- Proxy for occupier demand- Framework for investment
Source: LaSalle (09/17)
LaSalle European Regional Economic Growth Index INTRODUCTION TO LASALLE E-REGI INDEX
LaSalle Investment Management | LaSalle E-REGI Index 2017 5
Source: LaSalle (09/17)
Components of E-REGI scoreE-REGI METHODOLOGY
60% Growth
20%
WealthGDP per Capita
current
20%
Business Environment
Political Stability, Default, Regulatory and Trade Credit
Risk, Inclusion in EU/EMU current
E-REGI Score
15%
22.5%
22.5% GDP: 5 year forecast: growth and absolute 3 year historic growth
Service Employment: 5 year forecast: growth and absolute 3 year historic growth
LaSalle European Human Capital Index2017
LaSalle Investment Management | LaSalle E-REGI Index 2017 6
Source: LaSalle (09/17)
Zoom on LaSalle European Human Capital IndexINCLUDED IN LASALLE E-REGI INDEX SINCE 2016
THEME INDICATOR VARIABLE DATA SOURCE
Skilled WorkforceEducation level Tertiary Education Attainment Level
of population aged 30-34 years Eurostat
Quality of education University Ranking scoreCenter for World
University Rankings (CWUR)
CreativityPatent production Number of patents filed OECD
Agglomeration effect Population density Eurostat
InvestmentsR&D Investments R&D expenditure as % GDP Eurostat
Tech Venture Capital Investments
Venture capital investments in Tech firms Thomson Reuters
LaSalle Investment Management | LaSalle E-REGI Index 2017 7
Source: LaSalle (09/17)
Three categories of regions in the indexE-REGI METHODOLOGY
0.00
0.50
1.00
1.50
2.00
2.50
All European regions (n=295)E-REGI 2017 scores
Other Regions Cities with Strong Scores Cities with Medium Scores Cities with Weak Scores
European average = 1
Regions with Strong Scores Regions with Medium Scores Regions with Weak Scores
LaSalle Investment Management | LaSalle E-REGI Index 2017 8
49%
55%
64%67% 68%
72%
64% 65% 65%
51%
68%
53%
63% 64%
0.00
0.20
0.40
0.60
0.80
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Correlation between E-REGI score & office take-up in 3 following years33 office markets
Correlation Average
Source: LaSalle (09/17)
Robust relationship between E-REGI performance & occupier demand AVERAGE CORRELATION OF 62% BETWEEN E-REGI SCORE & OFFICE TAKE-UP
62%
LaSalle Investment Management | LaSalle E-REGI Index 2017 9
2. 2017 Results
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2017 Headline results – Top 15
LaSalle E-REGI 20161. Paris
2. London
3. Stockholm
4. Munich
5. Luxembourg
6. Istanbul
7. Dublin
8. Madrid
9. Stuttgart
10. Oslo
11. Copenhagen-Malmö
12. Zürich
13. Lyon
14. Brussels
15. Barcelona
LaSalle E-REGI 20171. London
2. Paris
3. Stockholm
4. Istanbul
5. Dublin
6. Luxembourg
7. Munich
8. Oslo
9. Stuttgart
10. Copenhagen-Malmö
11. Zürich
12. Madrid
13. Berlin
14. Brussels
15. Lyon
+3
Source: LaSalle (09/17)
LaSalle Investment Management | LaSalle E-REGI Index 2017 11
2017 Headline results – score components
0.43
0.50
0.77
0.66
0.68
0.34
0.40
0.41
0.42
0.45
0.49
0.54
0.86
0.72
0.34
0.45
0.34
0.52
0.60
0.00 0.50 1.00 1.50 2.00 2.50
GDP
Employment
Human Capital
Wealth
Business Environment
2017 Scores
LaSalle E-REGI 20171. London2. Paris3. Stockholm4. Istanbul5. Dublin6. Luxembourg7. Munich8. Oslo9. Stuttgart10. Copenhagen-Malmö11. Zürich12. Madrid13. Berlin14. Brussels15. Lyon
Source: LaSalle (09/17)
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Source: LaSalle, 2017
E-REGI 2017 - Scores
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Four groups of cities
The Aspiring
London ParisStockholm
Tier
1
The Affluent
The Movers
Munich
Stuttgart
Frankfurt
Mannheim-Karlsruhe
Düsseldorf
Cologne-Bonn
Hamburg
Nottingham-DerbyLeeds
Edinburgh
LiverpoolMarseille-Nice
Lyon
Amsterdam
Rotterdam-The HagueUtrecht
Brussels
Antwerp
Helsinki Copenhagen
Oslo
Luxembourg
Vienna
Zürich
Geneva
BaselBern
Gothenburg
Dublin
BerlinMadrid
Barcelona
Milan
IstanbulWarsaw
Bratislava Izmir
Ankara
Poznan
BudapestPrague Krakow
Katowice
Moscow
Leipzig-DresdenManchester Bristol
Bordeaux
BirminghamBilbao
Seville
Tricity
WroclawBucharest
ValenciaBologna
RomeGlasgow
CardiffVerona-Venice
Lisbon
Zaragoza
Vilnius RigaLjubljana
Tallinn
Nantes
Athens
Genoa
Newcastle
Nuremberg
Lille
Strasbourg
Sofia
SheffieldThessaloniki
Source: LaSalle (09/17)
TurinToulouse
The ConsistentTi
er 2
Tier
3Ti
er 1
Tier
2Ti
er 3
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3. The Consistent: key target markets
LaSalle Investment Management | LaSalle E-REGI Index 2017 15
The Consistent – Most of core Europe
London
ParisMunich
Stuttgart
Amsterdam
Hamburg
Cologne-BonnDüsseldorf
Utrecht
Edinburgh
Liverpool
Glasgow
Source: LaSalle (09/17)
Tier-1 citiesTier-2 cities
Bologna
Marseille-Nice
Dresden-Leipzig
Lyon
Birmingham
Toulouse
Brussels
Stockholm
Vienna
Gothenburg
Copenhagen-Malmö
Helsinki
Lille
Frankfurt
Naples
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0.80
1.00
1.20
1.40
1.60
1.80
2.00
2.20
2.40
2.60
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
E-REGI Scores & Ranks # over timeThe Consistent
# 2
Source: LaSalle (09/17)
The Consistent: London & Paris neck and neck at the top this yearVERY SMALL DIFFERENCE IN SCORES BETWEEN THE TWO GLOBAL CITIES
# 8# 6
# 1
# 1
# 2
# 1
# 1# 1
# 2# 1
# 2
# 1# 1
# 1 # 1 # 1# 2
# 1
# 3
# 1
# 2# 2
# 3
# 4# 4# 4
# 2# 2
# 4# 3
# 2 # 2 # 2
# 1
# 1
Paris
London
LaSalle Investment Management | LaSalle E-REGI Index 2017 17
Source: LaSalle (09/17)
The Consistent: Stockholm & Munich have improved over the last 18YFRANKFURT IS THE MOST STABLE!
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
E-REGI Scores over timeThe Consistent
Stockholm
Munich
Brussels
Hamburg
FrankfurtAmsterdam
LaSalle Investment Management | LaSalle E-REGI Index 2017 18
Source: LaSalle (09/17)
How to find attractive risk-adjusted opportunities in Consistent cities?3 OPTIONS
Focus on the U (Urbanisation) of DTU+E
Take core+ risks in established locations
Invest in alternative sectors
1
2
3
LaSalle Investment Management | LaSalle E-REGI Index 2017 19
Source: LaSalle (09/17)
How to select Tier-2 markets within the Consistent?WHERE TO FIND VALUE OUTSIDE TIER-1 MARKETS?
StuttgartLyon
HelsinkiUtrecht
ToulouseDüsseldorf
Cologne-BonnMarseille-Nice
EdinburghBirmingham
BremenLeipzig-Dresden
Bologna
LilleGlasgowLiverpoolNaples
Weaker citiesStrong cities
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4. The Affluent: solid but expensive
LaSalle Investment Management | LaSalle E-REGI Index 2017 21
Zürich
Oslo
Geneva
Luxembourg
Basel-Mulhouse
The Affluent – The wealthiest cities
Antwerp
Source: LaSalle (09/17)
Tier-1 citiesTier-2 cities
Bern
Genoa
LaSalle Investment Management | LaSalle E-REGI Index 2017 22
Source: LaSalle (09/17)
Strong performance of Swiss cities driven by wealth & human capital STRONG PERFORMING CITIES BUT WITH SMALL INVESTABLE STOCK AND ACTIVE DOMESTIC INVESTORS
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
E-REGI Scores over timeThe Affluent
Luxembourg
Zürich
Geneva
Basel-Mulhouse
LaSalle Investment Management | LaSalle E-REGI Index 2017 23
5. The Movers: either recovering or structurally improving
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Milan
Madrid
Berlin
Rome
Valencia
Dublin
Bristol
The Movers – Cyclical and structural Movers
Barcelona
Seville
Bilbao
Source: LaSalle (09/17)
Tier-1 citiesTier-2 cities
Rotterdam-The Hague
Lisbon
Athens
Manchester
LaSalle Investment Management | LaSalle E-REGI Index 2017 25
Source: LaSalle (09/17)
The Movers: Cyclical Movers include Dublin, Milan & Spanish citiesMILAN HAS ONLY PARTIALLY RECOVERED ITS PRE-GFC PERFORMANCE
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
E-REGI Scores over timeThe Cyclical Movers
Dublin
Barcelona
Milan
Madrid
LaSalle Investment Management | LaSalle E-REGI Index 2017 26
Source: LaSalle (09/17)
The Movers: Structural Movers are Berlin, R’dam, Bristol & ManchesterMANCHESTER NEGATIVELY IMPACTED BY BREXIT LAST YEAR BUT EXPECTED TO CONTINUE ITS UPWARD TREND
0.80
1.00
1.20
1.40
1.60
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
E-REGI Scores over timeThe Structural Movers
Bristol
Berlin
Manchester
Rotterdam
LaSalle Investment Management | LaSalle E-REGI Index 2017 27
6. The Aspiring: attractive but few transparent markets
LaSalle Investment Management | LaSalle E-REGI Index 2017 28
Istanbul
Prague
Budapest
Warsaw
Krakow
Bratislava
Poznan
Tier-1 citiesTier-2 cities
The Aspiring – Growth-driven but lack of transparency
Wroclaw
Source: LaSalle (09/17), JLL
MoscowTallinn
Riga
Vilnius
Bucharest
Sofia
Ljubljana
Ankara
Izmir
St Petersburg
LaSalle Investment Management | LaSalle E-REGI Index 2017 29
Istanbul
Prague
Budapest
Warsaw
Krakow
Bratislava
Lodz
Tier-1 citiesTier-2 cities
The Aspiring – Growth-driven but lack of transparency
Wroclaw
Source: LaSalle (09/17), JLL
MoscowTallinn
Riga
Vilnius
Bucharest
Sofia
Ljubljana
Zagreb
Ankara
Izmir
St Petersburg
LaSalle Investment Management | LaSalle E-REGI Index 2017 30
Source: LaSalle (09/17)
Warsaw has a stronger growth outlook but Prague is more balancedMOST ASPIRING CITIES DO NOT OFFER SUFFICIENT TRANSPARENCY / LIQUIDITY BUT OFFER DIVERSIFICATION
0.60
0.80
1.00
1.20
1.40
1.60
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
E-REGI Score over timeThe Aspiring
Warsaw
Prague
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LaSalle E-REGI Index 2017
Visit the online page to download the report (available in English & in German), to access the interactive map and to watch our animation video
www.lasalle.com/research/e-regi
LaSalle Investment Management | LaSalle E-REGI Index 2017 32
This document does not constitute an offer to sell, or the solicitation of an offer to buy, and is subject to correction, completion and amendment without notice. This document has been prepared without regard to the specific investment objectives, financial situation or particular needs of recipients. No legal or tax advice is provided. Recipients should independently evaluate specific investments. By accepting receipt of this publication, the recipient agrees not to distribute, offer or sell this publication or copies of it and agrees not to make use of the publication other than for its own general information purposes.
The views expressed in this document represent the opinions of the persons responsible for it as at its date, and should not be construed as guarantees of performance with respect to any investment. LaSalle has taken reasonable care to ensure that the information contained in this document has been obtained from reliable sources but no representation or warranty, express or implied, is provided in relation to the accuracy, completeness or reliability of such information. LaSalle does not undertake and is under no obligation to update or keep current the information or content contained in this document for future events. LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this document.
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LaSalle Investment Management | LaSalle E-REGI Index 2017 33
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