LaSalle’s August 2021 Macro Indicators - The Rising Threat of Extreme Weather

LaSalle’s August 2021 Macro Indicators


The Rising Threat of Extreme Weather


In recent weeks, many records have been broken. We aren’t
referring to the Tokyo Olympics but to record-setting heat,
floods and fires in many parts of the world.  Record heat in
western North America, record rainfall in Germany and the Benelux
countries, and near-record rainfall in Henan Province, China
remind us that, as many scientists had predicted, extreme weather
events are becoming more intense due to climate change.


The pandemic continues to be front-of-mind around the world as
COVID-19 variants remain ever-present, in most countries. Rising
vaccination levels could allow a phased re-opening of economies
and a palpable sense that a return to normal is imminent.
 At the same time, extreme weather events in recent weeks
remind us that the post-COVID world will not be the same as the
pre-pandemic one.


This will not be the last time that our research team will be
reporting on extreme weather and its impact on real estate. We
believe that the events of the last two months represent the
beginning of a long journey.  At LaSalle, we are integrating
climate risk analysis into our underwriting and portfolio reviews
of managed assets. The research, risk management, and ESG teams
at LaSalle have joined forces to bring the latest scientific
analysis and projections for future climate change directly to
our investment teams. This journey requires an understanding of
which risks are covered by insurance or mitigated through
physical improvements, and which cannot.  This is a journey
that all real estate investors must eventually take.


Chris Langstaff, Senior Strategist, Canada


Dan Mahoney, Senior Strategist, U.S.


Jacques Gordon, Global Strategist