In 2015, our Corporate Solutions business has continued to expand its client base as follows:

Alignment of interests of investors and investment managers.

Institutional investors continue to allocate significant portions of their investment capital to real estate. Many investors have shown a desire to commit their capital to investment managers willing to co-invest their own capital in specific real estate investments or real estate funds. In addition, investors are increasingly requiring that fees paid to investment managers be more closely aligned with investment performance. As a result, we believe that investment managers with co-investment capital, such as LaSalle, will have an advantage in attracting real estate investment capital. In addition, co-investment may bring the opportunity to provide additional services related to the acquisition, financing, property management, leasing, and disposition of such investments.

We expect institutional capital to continue to flow into real estate as interest rates remain at historically low levels. In the event that global equity markets decline significantly, a potential counterweight will be the so-called ‘‘denominator effect’’ where money managers will reduce their real estate investments in order to keep them from becoming too large proportionately. We are also seeing institutional investors consolidate their real estate portfolios, moving away from the spread of smaller managers assembled over the last cycle to larger managers such as LaSalle.

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