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Five trends to watch

One

Real estate markets on a steady course

Investor and corporate occupier activity is at a robust level, despite geopolitical tensions and various election cycles worldwide.

Global investment and leasing volumes are largely unchanged from last year and are expected to remain solid through 2017.

There are signs that economic growth in developed and emerging markets is once again moving in tandem.




Real estate markets on a steady course

Jeremy Kelly, Director Global Research, shares his perspective on the outlook for global real estate.

2017 Prospects

Capital Values

Capital Values 3% Slowing

Rents

Rents 2% Slowing

Develoitpment

Development 25% Peaking

Vacancy Rate

Vacancy Rate 12.1% Increasing

Leasing

Leasing 39 m sqm Stable

Investment

Investment US$ 650bn Firm

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



In this month's Global Market Perspective

Two

Two

A big year for new office developments

The peak in the office development cycle is approaching, with 2017 new deliveries expected to be 25% higher than 2016. This marks a turning point for global office vacancy rates, which are set to move gradually upwards for the rest of the year.

As markets absorb a greater volume of new stock, office rental growth is expected to slow, but is likely to remain positive in most major markets.

More on offices

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Regional market
performance
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Three

Three

Retailers focus on prime locations

Changing consumer tastes and increasing e-commerce are leading to polarisation in the retail market. While there are significant store closures, choice pitches are seeing strong performance. Retailers are focusing on dominant, high-footfall locations that enhance a consumer's experience of a brand.

More on retail

Four

Four

Competition intensifies for logistics space

Logistics networks are being restructured thanks to the growth of e-commerce, demand for last-mile fulfillment, and pressures to increase efficiency. This means rising levels of demand for logistics real estate from both occupiers and investors.

Competition for space remains intense though significant construction is in the pipeline. The vacancy rate in the U.S. is at a new low, and it's also edging lower in Europe.

More on logistics
logistics

Five

Five

Residential sector benefits from structural change

Institutional investment in the Private Rented Sector (PRS) continues to expand globally. In Europe, new investors - both international and domestic - are entering the UK market while France and Germany are also seeing high levels of transactions.

But the U.S. multifamily market is slowing following a prolonged boom in activity.

JLL Clocks - Global Residential Rents
U.S. EMEA Asia Pacific
U.S.: Multifamily Residential; EMEA: Central City; AP: Prime Residential
More on residential

Global Market Perspective, May 2017

Chapters

Compare Markets

Investment Market

Investment Market

Capital continues to target real estate Read More

Corporate Occupier Markets

Corporate Occupier Markets

Smart growth, agility and optimisation Read More

Offices

Offices

Market conditions are firm Read More

Retail

Retail

Focus on dominant locations in shifting retail market Read More

Warehousing

Warehousing

Competition intensifies for logistics space Read More

Hotels

Hotels

Continuing resilience in the hospitality sector Read More

Residential

Residential

Residential sector benefits from structural change Read More

Downloads & Contacts

Global Market Perspective, May 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, 1.47 MB)



For more information, speak to one of our Research experts

Jeremy Kelly

Jeremy Kelly

Director, Global Research Programmes

Jeremy.Kelly@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

Matthew McAuley

Matthew McAuley

Senior Analyst, Global Research

Matthew.Mcauley@eu.jll.com