GMP
X

Six trends to watch

One

2018 set to be robust for commercial real estate

2017 is turning out to be a good year for commercial real estate and, barring any major shocks, 2018 will follow a similar track. Investment and leasing markets should remain broadly stable through 2018 with the global economy in its best shape since the Great Recession.

2018 Prospects

Capital Values

Capital Values 2% Increasing

Rents

Rents 3% Increasing

Develoitpment

Development -1% Slowing

Vacancy Rate

Vacancy Rate 12.5% Rising

Leasing

Leasing 39 m sqm Stable

Investment

Investment -5-10% Lower

Leasing, vacancy, development, rents and capital values relate to the office sector. Full-year 2018 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, November 2017

In this video, we answer your questions about
global market trends and prospects for 2018. (4 min)

video

Two

Two

Investor appetite for real estate continues

Investors continue to target real estate despite a market light on investable assets. They are also more disciplined in their investment strategies, taking a considered approach as major real estate markets enter their late-cycle stage. This is likely to constrain real estate volume growth next year.

Three

Two

London regains investment crown

London has regained its position as the top investment destination, while Los Angeles moves ahead of New York into second place. Meanwhile, Hong Kong and Singapore are attracting more capital, and Berlin has posted its strongest quarter on record, emerging as a hotspot for cross-border investors.

More on investment

Compare

City performance
Compare

Four

Four

Companies demand flexible space

Organisations are seeking flexible working space in response to an ever-increasing pace of business change. This is driving the growth of the co-working sector, with JLL estimating that 30% of all office space will have a flexible component by 2030.

More on corporates

Five

Four

Logistics rents to edge higher in 2018

Demand is outpacing supply in logistics markets worldwide, driven by the ascent of e-commerce. This means that industrial rents are likely to edge higher in 2018, spurred by a further increase in take-up and persistently low market vacancy.

More on logistics
logistics

Global Market Perspective, November 2017

Chapters

Compare Markets

Investment Market

Investment Market

Read More

Corporate Occupier Markets

Corporate Occupier Markets

Read More

Offices

Offices

Read More

Retail

Retail

Read More

Warehousing

Warehousing

Read More

Hotels

Hotels

Read More

Residential

Residential

Read More

Downloads & Contacts

Global Market Perspective, November 2017

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, 1.89 MB)



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