LaSalle’s Allan Swaringen Positive on Core Real Estate Amid Continued Higher Rates

Allan Swaringen, managing director at LaSalle Investment Management, speaks with the REIT Report podcast about the outlook for core real estate against a backdrop of continued elevated interest rates. He argues that with rates expected to stay higher for longer, long-term growth in the sector will be driven by rent growth, and that investors continue to seek durable, reliable income. He also covers sector-level detail in open-air grocery-anchored retail, apartments and single-family rentals, and outpatient medical real estate.

1. Swaringen says the outlook for core real estate fundamentals remains positive even with rates expected to be higher for longer.
2. He says long-term growth will be driven by rent growth, and that investors are still looking for durable, reliable income.
3. On open-air, grocery-anchored retail, he notes little new development since the pandemic, which he ties to strong occupancies and attractive rent growth.
4. He cites a strong case for renters in both apartments and single-family rentals, and describes outpatient medical real estate as supported by five-, 10- or 15-year leases with high-quality doctor practices, plus aging-demographic demand.