LaSalle Investment Management has been awarded an approximately $575 million mandate to invest in US industrial development on behalf of a large public pension plan. LaSalle declined to identify the pension, other than to say it is a longstanding client, but the pension is said to be the Virginia Retirement System.
Through the mandate, LaSalle will focus on investment opportunities to develop and lease large, modern distribution buildings in major population centers with strong transportation infrastructure. “This investment strategy will enable LaSalle to assemble a US warehouse portfolio on behalf of our client in primary distribution markets to own long term,” said Julie Manning, portfolio manager, in a statement.
According to LaSalle’s research and strategy team, the availability rate for industrial supply has fallen by 2.2 percent since the fourth quarter of 2012 and 4.2 percent since 2010. In addition, rent growth is projected to increase nationally by more than 3 percent annually, with higher forecast rental growth in top markets as compared to long-term averages.
“End-user demand for industrial real estate is very strong right now, driven by growing GDP and global trade and the need for modern buildings that are part of an efficient supply chain,” added Jason Kern, LaSalle’s chief executive for the Americas. The increasing popularity of Internet retailing and a focus on improving supply-chain efficiencies by larger multinational retailers also is positively impacting demand for industrial real estate.