The US-based property investment company LaSalle Investment Management is bullish about returns from continental European commercial bricks-and-mortar even while other property markets suffer from the credit crunch.

LaSalle, which launched a new pan-European fund, LaSalle European Ventures Fund III, earlier in April, is particularly upbeat on the offices sector, it says in a statement on its investment views.

Its bullish remarks suggest that investment firms are still confident that some of the world’s real estate markets offer strong long term returns despite current credit-related worries. Earlier this week, the UK wealth manager and investment bank Arbuthnot said the UK market is far less vulnerable to a crash than its US counterpart.

In its note, LaSalle said: “The European office sector is benefiting from improving vacancy rates and low supply levels for grade A space and positive rental growth forecast over the next three years.

“The overall economic outlook is positive for continental Europe, with a stable interest rate environment and an improving labour market, which has resulted in unemployment being at the lowest rate for 25 years across the Eurozone, at just 7.1 per cent.”

Commenting on its recently launched fund, LaSalle said that it will, with leverage, have a buying power of €4-5 billion ($6.35-$7.93 billion).

LaSalle Investment Management has around €4.0 billion assets under management across the European region and conducted €3.9 billion of property transactions in the region over the last three years. The investment firm is a member of the New York-listed Jones Lang LaSalle group, with $50.4 billion of assets under management.