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LaSalle E-REGI Index 2017 · PDF file LaSalle Investment Management | LaSalle E-REGI Index 2017 4 LaSalle E-REGI Index § Launched in 2000 - 2017 is the 18th edition of the LaSalle

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  • LaSalle Investment Management | LaSalle E-REGI Index 2017 1

    LaSalle E-REGI Index 2017 EUROPEAN 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 score E-REGI METHODOLOGY

    60% Growth

    20%

    Wealth GDP 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 Index 2017

  • LaSalle Investment Management | LaSalle E-REGI Index 2017 6

    Source: LaSalle (09/17)

    Zoom on LaSalle European Human Capital Index INCLUDED IN LASALLE E-REGI INDEX SINCE 2016

    THEME INDICATOR VARIABLE DATA SOURCE

    Skilled Workforce Education level Tertiary Education Attainment Level of population aged 30-34 years Eurostat

    Quality of education University Ranking score Center for World

    University Rankings (CWUR)

    Creativity Patent production Number of patents filed OECD

    Agglomeration effect Population density Eurostat

    Investments R&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 index E-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 years 33 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

  • LaSalle Investment Management | LaSalle E-REGI Index 2017 10

    2017 Headline results – Top 15

    LaSalle E-REGI 2016 1. 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 2017 1. 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 2017 1. 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

    Source: LaSalle (09/17)

  • LaSalle Investment Management | LaSalle E-REGI Index 2017 12

    Source: LaSalle, 2017

    E-REGI 2017 - Scores

  • LaSalle Investment Management | LaSalle E-REGI Index 2017 13

    Four groups of cities

    The Aspiring

    London Paris Stockholm

    Ti er

    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-Dresden Manchester Bristol

    Bordeaux

    Birmingham Bilbao

    Seville

    Tricity

    Wroclaw Bucharest

    ValenciaBologna

    RomeGlasgow

    Cardiff Verona-Venice

    Lisbon

    Zaragoza

    Vilnius RigaLjubljana

    Tallinn

    Nantes

    Athens

    Genoa

    Newcastle

    Nuremberg

    Lille

    Strasbourg

    Sofia

    Sheffield Thessaloniki

    Source: LaSalle (09/17)

    TurinToulouse

    The Consistent Ti

    er 2

    Ti er

    3 Ti

    er 1

    Ti er

    2 Ti

    er 3

  • LaSalle Investment Management | LaSalle E-REGI Index 2017 14

    3. The Consistent: key target markets

  • LaSalle Investment Management | LaSalle E-REGI Index 2017 15

    The Consistent – Most of core Europe

    London

    Paris Munich

    Stuttgart

    Amsterdam

    Hamburg

    Cologne-Bonn Düsseldorf

    Utrecht

    Edinburgh

    Liverpool

    Glasgow

    Source: LaSalle (09/17)

    Tier-1 cities Tier-2 cities

    Bologna

    Marseille-Nice

    Dresden- Leipzig

    Lyon

    Birmingham

    Toulouse

    Brussels

    Stockholm

    Vienna

    Gothenburg

    Copenhagen-Malmö

    Helsinki

    Lille

    Frankfurt

    Naples

  • LaSalle Investment Management | LaSalle E-REGI Index 2017 16

    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 time The Consistent

    # 2

    Source: LaSalle (09/17)

    The Consistent: London & Paris neck and neck at the top this year VERY 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 18Y FRANKFURT 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 time The Consistent

    Stockholm

    Munich

    Brussels

    Hamburg

    Frankfurt Amsterdam

  • 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 | La

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