LaSalle's October 2022 Macro Indicators

The last day of summer in the Northern Hemisphere was September
22nd, and cooler temperatures will surely be welcomed by many.
Europe and China recorded their hottest-ever summers since
recordkeeping began in 1880, according to NOAA’s National Centers
for Environmental Information. Meanwhile, the US recorded its
third-hottest summer by the same metric.


Our recent report, “How to Choose, Use and Better Understand
Climate Risk Analytics," researched and written in partnership
with the Urban Land Institute (ULI), is an excellent overview of
the challenges faced by first-time consumers of climate data. The
paper outlines physical climate risk basics, identifies
differences between data providers to be aware of, and raises a
call to action to standardize the outputs in ways that are most
meaningful and useful for real estate, with transparency that
enables apples to apples comparisons across models.  


Once the data is in hand, the next step is to manage the risks at
two levels: at the property level, through evaluating both
existing and potential new hardening strategies to be more
resilient against particular hazards; and at the portfolio level,
through assessment of exposure concentrations and consideration
of how climate risk informs overall portfolio construction
strategies. And lastly, we must continue to monitor these risks
on a regular basis, because one thing we know for sure is that
our climate will continue to change, and more disruptive and
damaging seasons like the hot summer of 2022 are likely to recur.


Learn more at lasalle.com/research