Jones Lang LaSalle and LaSalle Investment Management have now completed the inaugural North American Regional Economic Growth Index (NA-REGI). Due to the expected continued strength of the Canadian economy relative to the U.S., Toronto ranked first in North America and all four Canadian cities placed in the top ten. In addition to Torontoâ€™s #1 ranking, Calgary placed fourth, Vancouver placed fifth, and Montreal was ranked tenth.
LaSalle Investment Managementâ€™s NA-REGI is a leading indicator of economic strength in the 36 North American cities that have been included for study in the World Winning Cities project. These 36 cities have been selected on the basis of their size, and economic and regional importance.
The REGI model has been used successfully by LaSalle Investment Management in the United States over the past eight years to help identify future demand and risks for commercial real estate, particularly office and industrial buildings. The model was introduced to Europe three years ago and to Canada last year.
The REGI is a multi-factor model that uses a variety of economic and risk variables to forecast future real estate demand. For comparison purposes, the North American REGI index value equals 1.0. Thus, a REGI score of 1.23 indicates that the forecast demand for commercial real estate is likely to be 23% higher in Toronto than the average for North America.
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(source: LaSalle Investment Management)