jll’s q3 2017 investment quick look - investment … and japan remain active for the right...

JLL Research Report

United States | Q3 2017

Investment Quick Look

The nature of investment is changing…

…and we are seeing this impact transactions in the second half of 2017. This is happening as the appetite for real estate risk is tightening, and investment sale volumes are cooling in the latter stages of the current cycle. This is evident across equity and debt strategies:

• The pace of fundraising is slowing, down 2.5 percent this year, and real estate dry powder in North America is plateauing at $152 billion;

• Value add remains the favored strategy for raising and deploying capital, as opportunistic funds are challenged. As a result, opportunistic funds are sitting on +21.0 percent more dry powder than value add funds, but they have deployed half the capital year-to-date;

• Investors are shifting toward debt strategies as an alternate path to yield. Life companies are on pace to have another historic year of lending, and debt fund dry powder has expanded 26.9 percent to record levels this year;

• Traditional lenders are tightening lending standards and limiting exposure to construction loans, large single asset loans and higher risk assets.

What is this reflective of? While market volatility continues to trend lower, implied real estate market volatility in the near-term is higher than the economy at-large, and investors are now pricing a marginally higher risk premium for the asset class. This comes amidst waning capital appreciation and a near-certain rate hike in December.

This is not deterring investor interest in the real estate market. In the current yield-starved environment, investors remain focused on real estate allocation and AUM growth ambitions. However, it is impacting the nature of investment and preferred positions and structures of achieving real estate targets. This is driving down conventional, single asset activities in favor of entity- and GP-level investments, strategic joint ventures and more complex recapitalizations. While still in the early stages of this shift, it is already evident in investment activity: Recapitalizations are up nearly 80.0 percent this year, and cross-border investors are diversifying into new sectors via large portfolios and entity-level investments.

What does this mean for U.S. markets? Capital demand for real estate globally remains at record levels and is favoring U.S. product. However, this capital is sticking closer to investment criteria and underwriting opportunities more conservatively. Thus, to work toward targets while managing for risk and return requirements, entity-level and debt activities will comprise a larger share of real estate investment in the remainder of the cycle. This will make liquidity gaps more apparent in the quarters to-come: Higher yield-seeking sources of capital will remain focused on value add strategies, while institutional groups will remain on the defensive with a focus on those assets in proven long-term submarkets and with stable income outlooks, favoring areas such as multifamily and urban office as opposed to retail. As we move to year-end with full-year volumes down as expected (a 10.0 percent decline), we expect these shifting market dynamics to apply further downward pressure on volumes in 2018.

- Jonathan Geanakos & Sean Coghlan President, JLL Capital Markets Director, Investor Research

Office Industrial Multifamily Retail Hotels

12-month net absorption/occupancy growth(as a % of inventory)

0.7% 1.7% 1.3% 0.6% 0.6%

12-month completions (as a % of inventory) 1.4% 1.7% 1.5% 0.7% 1.8%

12-month rent / ADR growth (p.s.f., %) 2.3% 5.3% 2.4% 4.8% 2.4%

YTD investment sales growth (%) -13.3% 34.7% -11.9% -21.4% -23.9%

Investment sales volume(YTD, billions of $US)

$87.1 $43.9 $94.2 $39.2 $16.8

Overall stats from the third quarter

JLL | Investment Quick Look | United States | Q3 20173

Selectivity, conservative underwriting and the changing nature of

transactions impacting conventional sales activities

2017 investment sales forecast (%)

-10.0%$281.3Investment sales (YTD, billions of $US) YTD investment sales growth (%)

-8.8%

United States


Demand: New supply is outpacing demand, applying upward pressure on office vacancy• Despite construction starts falling below the long-term average of 47.8

million square feet, an additional 22.9 million square feet of space is expected to hit the office market throughout the remainder of 2017.

• New supply will continue to put upward pressure on office vacancy rates. Relative to third quarter 2016, office vacancy rates for CBD class A and B have increased by 40 and 50 basis points, respectively.

Transactions: Sizeable third quarter decline in activity positions 2017 for the highest year-over-year volume decline of the current cycle• Office volumes are down 13.3 percent year-to-date, marking an increased

decline after being down just 6.7 percent after the first half of 2017. Selectivity, conservative underwriting and the changing nature of U.S. investment activities are key factors in this decline.

Markets: Despite broad declines in activity, secondary markets seeing largest share of overall investment since 2009• Year-to-date, 48.9 percent of volumes occurred in secondary markets, the

highest level since 52.1 percent in 2009. Of the top ten markets, Dallas and Atlanta are leading activity with $3.0 and $2.3 billion of investment, respectively.

Sources of capital: Although leading year-to-date foreign office investment, Chinese capital pulled back in the third quarter• Foreign office participation remains elevated at 17.7 percent year-to-date

and is outperforming peer sectors. Investors from Canada, Germany, South Korea and Japan remain active for the right opportunities.

• Since the first quarter of 2015, Chinese investment has averaged $870.2 million per quarter. In third quarter 2017, this fell to below $100.0 million. Full-year volumes will remain high, but questions remain on capital controls.

Sources of risk: Office investors continue to favor higher-quality assets in wake of uncertainty• Office investors are favoring higher-quality investments amidst continued

political uncertainty and subdued growth in fundamentals. • Trailing 12-month Trophy and Class A investment as a percentage of overall

volume reached 70.5 percent in the third quarter of 2017. This percentage has been on an upward trajectory since it bottomed out in the first quarter of 2016 at 55.8 percent.

Property market

5012-month change in total vacancy (bps)

0.7%12-month net absorption (as % of inventory)

1.4%12-month completions (as % of inventory)

2.3%12-month rent growth (p.s.f.)

Investment market

$87.1Investment sales (YTD, billions of $US)

-13.3%YTD investment sales growth

4.1%Average cap rate

-412-month change in cap rate (bps)

Changing nature of transactions and elevated barriers to coastal markets inhibiting office investment

Office

4.1%

4.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

YTD

201

7

10-year Treasury yield (%)

Average primary market office cap rate (%)

Average secondary market office cap rate (%)

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Q1 Q2 Q3 Q4


Notable secondary market transactions, Q3 2017

Market Property Buyer Seller Price ($) Size (s.f.) Price (p.s.f.)

Orange County Broadcom Campus Fivepoint Communities Broadcom $443,000,000 2,100,000 $211

Philadelphia 1500 Market St Nightingale Properties Equity Commonwealth $328,000,000 1,770,000 $185

Kansas City 8717 W 110th StIMC Real EstateManagement

Stoltz RE Partners $287,500,000 2,200,000 $131

Atlanta242 Perimeter CenterPkwy NE

Transwestern KDC $275,400,000 585,000 $471

Notable office transactions

Source: JLL Research, NCREIF, Board of Governors of Federal Reserve System

Office cap rates for institutional product remain stable; income fundamentals driving pricing and investment returns in the current market

Year-to-date, office volumes down 13.3 percent after slow start to second half of 2017

Source: JLL Research, Real Capital Analytics (Transactions larger than $5.0M)

Notable primary market transactions, Q3 2017


New York 375 Hudson St Trinity Real Estate / Norges Tishman Speyer $580,000,000 1,088,126 $533

San Francisco 222 2nd St Tishman SpeyerJP Morgan AssetManagement

$529,329,060 452,418 $1,170

Washington, DC 300 E St SW Korea Investment HoldingsPiedmont Office RealtyTrust

$359,600,000 605,897 $593

Los Angeles 5670 Wilshire Blvd Rockpoint Group Brookfield $215,000,000 453,182 $474

Notable portfolio transactions, Q3 2017


National Oak Street Net LeasePortfolio (Multi-sector)

Stonemont Financial Oak Street Real EstateCapital

$479,000,000 2,306,039 $208

San Francisco / New York

Columbia Property Trust-Allianz Strategic Joint Venture

Allianz / Columbia Property Trust

Columbia Property Trust / Allianz

$342,900,000 (initial)

1,460,000 $872

Silicon Valley Silicon Valley NetAppPortfolio

Google NetApp $318,700,000 374,705 $851

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Demand: New supply and net absorption on track to surpass 200.0 m.s.f. mark by end of 2017• Vacancy remained even with the second quarter at 5.2 percent nationally,

with overall preleasing for new deliveries marked at 54.2 percent signed upon completion.

• Rents continued to increase to new all-time highs at $5.40 per square foot, with four out of every five markets exhibiting rising asking rents.

Transactions: 2017 total sales volume through the third quarter already third highest full-year tally since 2008• Volumes have been propelled with support from continued surge in

industrial portfolio acquisitions, with +$100.0 million transactions totaling over $4.0 billion in the third quarter alone.

• Current momentum will drive 2017 to the second largest historic total, as several more large-scale portfolios are set to close by the end of the year.

Markets: Attractive rent growth & scarcity of opportunities driving tertiary market activity• Through the third quarter, primary and secondary market activity

experienced year-over-year increases (in terms of total volume in $) of 16.0 and 15.2 percent, respectively.

• Tertiary markets attracting a significant jump in volume, with an over 30.0-percent jump in investment year-to-date.

Sources of capital: Foreign capital & REITs are significant drivers of acquisitions in 2017• Participation in industrial assets by foreign buyers drives investment to

exceed 160.0 percent of last year’s total through the third quarter. Foreign participation increased from 5.5 to 12.9 percent of overall industrial acquisitions year-over-year.

• REIT/REOC investors large contributors to 2017’s growth in volume, with an increased volume of 119.2 percent year-over-year through the third quarter.

Sources of risk: Concentrated competition continues to drive investment further out the risk spectrum, with an increased focus on fundamentals• As national supply and net absorption are expected to be virtually even at

the close of 2017, investors will keep a sharp eye on market fundamentals for signs of the market getting ahead of itself in regards to construction activity.

Property market

-6012-month change in total vacancy (bps)




Investment market


34.7%YTD investment sales growth



Resurgence in industrial portfolios leads sector as lone source for deal growth in the U.S.

Industrial

4.7%

5.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

YTD

201

7


Average primary market industrial cap rate (%)

Average secondary market industrial cap rate (%)

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Q1 Q2 Q3 Q4


Notable industrial transactions

Scarcity of opportunities and strength of rent growth remain drivers of modest sustained cap rate compression throughout primary markets

Surge in portfolios drives volumes to third highest tally since 2008 at close of the third quarter, up 34.7 percent



National TPG (Evergreen Industrial Properties) 'last-mile' Portfolio

Ivanhoe Cambridge TPG (Evergreen IndustrialProperties)

$995,000,000 16,000,000 $62

Maryland / PATA Realty D.C.-P.A. Portfolio

Colony NorthStar TA Realty $200,000,000 2,800,000 $71

Northern Cal. / St. Louis / Indy

Westcore Delta Portfolio

Blackstone Westcore / DRA Advisors $550,000,000 8,700,000 $63

National Scannell National Portfolio Sale

Gramercy Property Trust Scannell Properties $331,000,000 2,000,000 $166

Notable single-asset transactions, Q3 2017


Inland Empire 17791 Perris Blvd Duke Realty SARES-REGIS Group $111,858,000 794,477 $141

New York 184-10 Jamaica Ave Madison Realty Capital /Artemis RE Partners

Joe Pirrello $78,000,000 613,000 $127

Los Angeles 14317-14343 Don JulianRd

AEW Global Deutsche AWM – US $75,000,000 1,079,800 $69

Philadelphia-C. PA

3000 Am Dr WPT Industrial REIT Prologis $74,300,000 936,000 $79

Source: JLL Research, NCREIF, Board of Governors of Federal Reserve SystemSource: JLL Research, Real Capital Analytics (Transactions larger than $5.0M)

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Demand: U.S. multifamily rent growth remains muted, but absorption rates are holding steady• U.S. multifamily rent growth continues to slow in the face of elevated

deliveries. The national rent growth figure softened 10 basis points quarter-over-quarter to 2.4 percent.

• In spite of rent growth moderating, national absorption with respect to inventory rose 30 basis points from mid-year, increasing to 1.3 percent.

Transactions: Volume remains down and will see the first annual decline since 2009• Multifamily investment sales saw $35.8 billion of activity in the third quarter,

the strongest quarter of the year. • Despite this, volumes year-to-date remain 11.9 percent off of last year’s

record-setting activity, and will likely fall short of 2016’s $151 billion.

Markets: Select primary markets see an uptick in transaction activity, while the majority fall behind the pace set last year• Among primary markets, only Chicago, Los Angeles and San Francisco have

seen an uptick in transaction activity through Q3. The remaining eight primary markets have seen declines ranging from Washington D.C. at -8.1 percent to New York at -54.7 percent.

• Cap rates in secondary markets have softened, increasing 20 basis points year-over-year.

Sources of capital: A focus on alternative sectors and suburban markets has spurred REIT acquisitions to increase year-over-year• With $3.4 billion in investment sales on the quarter, REIT activity saw a 17.8-

percent year-to-date increase over 2016. • American Campus Communities led all publicly-traded REITs in activity with

a portfolio acquisition for student housing properties for $590.2 million.

Sources of risk: Supply-side risks in urban submarkets drive an increased focus on garden-style product• Investors’ appetite for high-rise product has slowed significantly in 2017.

High-rise transaction activity is down 46.7 percent year-over-year.• While investors shy away from urban submarkets, garden-style assets

comprised 69.6 percent of transaction activity year-to-date.

Property market

3012-month change in total vacancy (bps)




Investment market





Transaction activity picks up in Q3, but 2017 is falling short of 2016’s record mark

Multifamily

2.4%4.1%

4.9%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

YT

D


Average primary market multifamily cap rate (%)


Notable multifamily transactions

Multifamily cap rates remain stable, with secondary markets beginning to see softening

Multifamily sees 35.8 billion in sales in the third quarter

Investment sales volumes down 11.9 percent year-to-date


Market Property Buyer Seller Price ($)Size

(units)

Price ($ per unit)

Northern New Jersey

Quail Ridge Apartments Kushner CompaniesAngelo Gordon /Candlebrook Properties

$190,000,000 1,032 $184,109

San Diego Olympus CorsairOlympus Property / ArtemisReal Estate Partners

PGIM Real Estate $136,500,000 360 $379,167

Denver Kent Place ResidencesJP Morgan AssetManagement

Forum Real Estate Group $127,400,000 300 $424,667

Portland Centro Sequoia Equities Heitman $120,000,000 480 $250,000



(units)Price

($ per unit)

Chicago Coast at Lakeshore EastMorguard North American Residential REIT

Magellan Development $222,500,000 515 $432,039

ChicagoUniversity CenterChicago – StudentHousing

Blue Vista Capital

Columbia CollegeChicago / DePaulUniversity / RooseveltUniversity

$201,000,000 504 $398,810

Seattle-Bellevue Venn at Main Equity ResidentialWolff Company / LeavittCapital Companies

$176,185,000 353 $499,108

BostonHarborView at the NavyYard

Manulife Financial PGIM Real Estate $149,250,000 224 $666,295

Notable portfolio market transactions, Q3 2017


(units)Price

($ per unit)

NationalCore Spaces StudentHousing Portfolio(7 properties)

American CampusCommunities

Core Spaces $590,050,000 1,505 $392,060

NationalAVR Realty Portfolio(11 properties)

Carlton Associates / DavidWerner Real Estate

AVR Realty $510,000,000 3,534 $144,312

Washington, DCJBG Smith Mixed-UsePortfolio (6 properties)

Morgan Properties JBG Smith $496,000,000 2,664 $186,186

Los Angeles JPMorganRecapitalization(3 properties)

Aimco JP Morgan AssetManagement

$451,750,000 1,381 $327,118

Source: JLL Research, NCREIF, Board of Governors of Federal Reserve SystemSource: JLL Research, Real Capital Analytics (Transactions larger than $5.0M)

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$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Q1 Q2 Q3 Q4


Demand: Despite the headlines, retail demand remains stable but anticipated to decline through the remainder of the year• With rents up by 4.7 percent year-over-year and vacancy stable at 4.8 percent

across the U.S., retail fundamentals tell a competitive story, with retailers and investors alike looking to core markets to avoid risk.

• Construction has slowed by 14.4 percent across the U.S. from this time last year, as investors wait to gauge the future of retail space.

Transactions: Retail volumes continue to decline, seeing a further dip by 23.4 percent year-over-year, though pipelines remain steady• Strong assets have been rare to market this year, naturally leading to further

declines in retail volumes, with focus remaining on core and value-add/opportunistic deals with strong upside.

• Though cap rates continued to compress modestly in primary markets given the heightened competition for well-performing assets, secondary market cap rates have softened 20 basis points for the first time in six years.

Markets: Investors continue to narrow focus on strong, reputable primary markets, though little product is available• The three most active markets for transactions year-to-date are the same as

those from 2016: New York, Chicago and Los Angeles; investors are willing to pay premiums for top-performing assets within these markets.

• Though each of these markets saw volume declines exceed 30.0 percent, this speaks to investor purview to retail and follows the retailer trend of streamlining locations.

Sources of capital: Volumes decline and buyer pools shrink in 2017• REITs and institutional players are pulling back from retail in a major way,

changing the buyer pool dynamics across markets and product types, with institutional investment dropping by 62.2 percent year-over-year.

• While larger investors and foreign capital hit pause on retail investing, private investors continue to jump at opportunities in higher risk secondary and tertiary markets, making up a large portion of current buyer pools.

Sources of risk: Investors are willing to take on more risk for more upside as opportunities present themselves• The risk profiles amongst retail assets blur in the current retail landscape,

with investors willing to take on more risk for the right price.• Grocery is still a question on all buyers’ minds with increased appetite for the

number one or two grocers in a market, but hesitance remains for all others.

Property market

-712-month change in total vacancy (bps)




Investment market





Retail volumes continue to drop as large investors pull back from the sector due to sustained uncertainty

Retail

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Q1 Q2 Q3 Q4

4.3%

4.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017


Average primary market cap rate (%)

Average secondary market cap rate (%)


Notable retail transactions

Source: JLL Research, NCREIF, Board of Governors of Federal Reserve System

With narrowed retail focus, cap rates remain competitive in primary and secondary markets

Retail volumes decline with appetite curbed due to risk worries

Source: JLL Research, Real Capital Analytics (Transactions larger than $5.0M)



Portland Jantzen Beach Center Kimco EDENS $131,783,333 758,414 $174

Austin The Parke InvenTrust Endeavor RE Group $112,250,000 404,000 $278

Northern NewJersey

The Mall at Mill Creek New York Life Hartz Mountain $76,000,000 424,000 $179

DenverBear Valley ShoppingCenter

Northwood Investors Guggenheim Partners $46,000,000 342,840 $134



Los Angeles River Oaks InvenTrust SPI Holdings $115,000,000 272,000 $423

Chicago Lincolnshire Commons Next Realty Fortress $57,800,000 133,024 $435

PhiladelphiaShoppes at EnglishVillage

MetLife Stanbery Development $57,000,000 104,014 $548

Boston Sears Northwood Investors Sears Holding Corp $55,000,000 120,570 $456



Los AngelesPrimestor LosAngeles Retail Portfolio

Federal Realty Primestor Dev Inc $345,000,000 1,364,083 $253

NationalEagle Canyon CapitalNational CVS Portfolio

Inland Real Estate Group Eagle Canyon Capital $211,000,000 651,216 $324

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Demand: Full-service upscale and luxury hotels accounted for over two-thirds of single-asset transactions • High quality, single assets situated in top-25 markets or strong leisure

destinations comprised the lion’s share of hotels sold by volume at 69 percent.

Transactions: U.S. hotel transaction volume equaled $6.4 billion• Third quarter hotel transaction volume equaled $6.4 billion, representing a

42 percent decrease relative to the third quarter of 2016. The decrease is due to the sale of the Strategic Hotels and Resorts Portfolio to Anbang Insurance Group in Q3 2016.

Markets: The majority of the top-25 markets observed RevPAR growth • U.S. hotels posted RevPAR growth of 2.7 percent for YTD August 2017.

Expected hurricane-related demand is anticipated to boost full-year RevPAR growth to nearly 3.0 percent.

Sources of capital: Public REITs continue to support domestic investment• Public REITs accounted for 32 percent of transaction volume this quarter.

REITs (non-traded and public) and private equity funds accounted for nearly three-fourths of transaction volume in the third quarter of 2017.

Sources of risk: Additions to supply and cross-border investment are top of mind• U.S. supply grew by 1.8 percent for YTD August 2017. Increasing government

restrictions have slowed cross-border hotel investment from Mainland China.

Property market

0.6%12-month occupancy growth (%)

2.4%12-month ADR growth (%)

3.0%12-month RevPAR growth ( %)

1.8%12-month supply growth (%)

Investment market





Hotels volumes supported by hotel REITs and continued activity from private equity funds

Hotels

Foreign investment in U.S. hotels

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

2010 2011 2012 2013 2014 2015 2016 YTD

Q3

2016

YTD

Q3

2017

% o

f to

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ote

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To

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S)

Foreign hotel volume (billions of $USD)% of total hotel volume

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

2010

2011

2012

2013

2014

2015

2016

2017

Q1 Q2 Q3 Q4

7.3% 7.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

YTD Q3 2016 YTD Q3 2017


Notable hotels transactions

Source: JLL Research

Cap rates increased 10 bps as investors price in additional risk given the uncertainty over future additional growth in the current hotel cycle

U.S. hotel transaction volume equaled $6.4 billion in the third quarter of 2017, above the ten-year third quarter average

Source: JLL Research

Notable single-asset transactions, Q3 2017

Market Property Buyer Price ($) Size (rooms) Price per room

Santa BarbaraBacara Resort & Spa SantaBarbara

Watermark Capital Partners, LLC $375,000,000 358 $1,047,000

Los Angeles Jeremy West Hollywood Starwood Capital Group $280,000,000 286 $979,000

Hawaii Mauna Lani Hotel Waimea Prospect Hill Group $225,000,000 341 $660,000

Key WestOceans Edge Hotel & MarinaKey West

Sunstone Hotel Investors $175,000,000 175 $1,000,000

Washington, DCCrowne Plaza The HamiltonWashington *

EOS Investors $152,150,000 318 $478,000

New OrleansWestin New Orleans CanalPlace New Orleans *

The Berger Company $121,000,000 437 $277,000

JacksonvilleHyatt Regency JacksonvilleRiverfront

Westmont Hospitality Group $120,000,000 951 $126,000

Washington, DCLoews Madison HotelWashington, DC

Walton Street Capital $110,400,000 356 $310,000

ChicagoHyatt Centric The LoopChicago (leaseback)

Deka Immobilien Investment GmbH

$110,000,000 257 $428,000

Los Angeles The Everly Hotel Los Angeles Commerz Real Investmentgesellschaft mbH (CRI)

$102,500,000 216 $475,000

Long Beach Westin Long Beach Rockpoint Group, LLC $88,100,000 469 $188,000

Arlington Westin Crystal City Arlington * AVR Realty Company $83,000,000 220 $377,000

Miami Conrad Miami Mast Capital $72,000,000 252 $286,000

*JLL represented the seller

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About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $145 billion. At the end of the third quarter of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of over 80,000. As of September 30, 2017, LaSalle Investment Management had $59.0 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit ir.jll.com.

About JLL Research

JLL’s research team delivers intelligence, analysis and insight through market-leading reports and services that illuminate today’s commercial real estate dynamics and identify tomorrow’s challenges and opportunities. Our more than 400 global research professionals track and analyze economic and property trends and forecast future conditions in over 60 countries, producing unrivalled local and global perspectives. Our research and expertise, fueled by real-time information and innovative thinking around the world, creates a competitive advantage for our clients and drives successful strategies and optimal real estate decisions.

© 2017 Jones Lang LaSalle IP, Inc.

All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

Investor Research:

Sean CoghlanDirector, Investor Research+1 215 988 [email protected]

Sean KaneManager, Investor Research+1 213 239 [email protected]

Office:

David Hoebbel+1 312 228 [email protected]

Retail:

Arielle Einhorn+1 312 228 [email protected]

Industrial:

Peter Kroner+1 312 228 [email protected]

Hotels:

Geraldine Guichardo+1 312 228 [email protected]

Multifamily:

Michael Morrone+1 312 228 [email protected]

Debt & Equity:

Ronak Sheth+1 312 228 3471 [email protected]

jll’s q3 2017 investment quick look - investment … and japan remain active for the right...

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