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5 Trends to Watch

One

Global Real Estate Market Activity Stays Strong

Global real estate market activity remained elevated through the first quarter of 2019, although there are signs that momentum is slowing from last year’s impressive levels. Nevertheless, investor and corporate occupier demand are on track for a solid 2019, with activity expected to be well above long-run averages.

2019 Prospects

Capital Values

Capital Values ~3% Increasing

Rents

Rents ~3% Increasing

Development

Development 36% Peaking

Vacancy Rate

Vacancy Rate 11.5% Rising

Leasing

Leasing 43 m sqm Stable

Investment

Investment US$ 690bn Lower

Leasing, vacancy, development, rents and capital values relate to the office sector. Full-year 2019 forecast values. Capital values, rents and development figures refer to percentage change. Global vacancy rate - percentage value, leasing volumes in million square metres, investment volumes in US$ billions. Source: JLL, April 2019

Two

Two

Investor demand continues to rise but transactions moderate from record-breaking levels

Despite the growing amount of capital seeking exposure to real estate, investment activity in the first quarter fell 8% from the same period last year, which was a record high. Activity is likely to remain strong for the rest of the year, but will soften slightly as investors maintain discipline amid elevated pricing and a lack of suitable properties available for sale.

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Three

Two

An extended global office construction cycle

Office leasing demand has maintained a robust pace so far this year, putting it on track for 2019 levels to broadly match last year’s annual record. This is supporting construction activity, with new office deliveries forecast to peak this year, and to be comparable to levels at the height of the 2008 construction cycle. Hence, the global office vacancy rate is anticipated to rise gradually over the year, slowing further rental growth.

More on corporates

Four

Four

Urban logistics rising up the agenda

Global logistics markets continued to power ahead during the first quarter, with strong take-up and pre-leasing keeping vacancy rates stable at near-record lows despite increasing supply pipelines. With an increased emphasis on last-mile delivery, logistics companies are reviewing their supply chains and boosting demand for urban infill and multi-storey properties. Solid demand has kept rents rising in most locations.

More on logistics

Five

Five

Retailers and landlords focus on reinvention

Retailers and landlords are experimenting with new ways to use space as competition for consumer spending intensifies. Retailers are focused on improving their omni-channel retail offer, with some now using stores as cost-effective delivery hubs, while others are investing in robot-driven warehouses and self-driving cars for local deliveries. Pop-up stores also continue to gain appeal, representing a low-risk way for retailers to experiment with new types of products, technologies and services.

More on retail

Global Market Perspective, May 2019

Chapters

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Investment Market

Investment Market

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Corporate Occupier Markets

Corporate Occupier Markets

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Offices

Offices

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Global Office Index

Global Office Index

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Retail

Retail

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Warehousing

Warehousing

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Hotels

Hotels

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Residential

Residential

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Downloads & Contacts

Global Market Perspective, May 2019

JLL's regular view on the impact of economic forces on property markets worldwide. It is a unique combination of updates from professionals on the ground and the insights of our leading research organization.
Read full report (PDF, 378.3 KB)



For more information, speak to one of our Research experts

Jeremy Kelly

Jeremy Kelly

Director, Global Research Programmes

Jeremy.Kelly@eu.jll.com

Matthew McAuley

Matthew McAuley

Senior Analyst, Global Research

Matthew.Mcauley@eu.jll.com

David Green-Morgan

David Green-Morgan

Director, Global Capital Markets Research

David.Green-morgan@ap.jll.com

Ben Breslau

Ben Breslau

Director - Head of Research, Americas

Benjamin.Breslau@am.jll.com

James Brown

James Brown

Director - Head of Research, EMEA

James.Brown@eu.jll.com

Megan Walters

Megan Walters

Director - Head of Research, Asia Pacific

Megan.Walters@ap.jll.com