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Six trends to watch

One

Renewed momentum extends real estate cycle

Global economic growth has invigorated real estate markets worldwide. Leasing demand remains steady, while investors continue to allocate a larger portion of their capital to real estate. Deal flows so far are in line with what we saw in 2016.

2017 Prospects

Capital Values

Capital Values 6% Increasing

Rents

Rents 3% Increasing

Develoitpment

Development 28% Peaking

Vacancy Rate

Vacancy Rate 12.1% Rising

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, August 2017



In this month's Global Market Perspective

Two

Two

Office rental growth quickens

Office rental growth is accelerating once again on the back of robust leasing demand. While the delivery of new space is on the up and completions are expected to peak this year, new supply is driving asking rents higher and overall rental growth projections for 2017 have been upgraded.

Three

Two

Western Europe leads as most dynamic leasing market

Leasing activity has strengthened in Western Europe, which is taking the lead in driving global leasing markets during 2017. Employment prospects and corporate sentiment have improved across the region, while vacancy rates are falling and overall rental growth has quickened.

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Regional market
performance
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Four

Four

Global retail markets facing unprecedented structural changes

Announcements of store closures in the U.S. are highlighting a divergence in performance as retail markets adjust to the growth of online sales, omni-channel retailing and technical innovations. While these shifts present challenges, they are also an opportunity for retailers and mall owners to reposition and strengthen their brand offering. Retailers continue to seek quality space that enables them to provide convenience and an engaging experience for consumers.

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Five

Four

Logistics rents surging

Strong online sales growth, automation and the need for new city logistics networks are fuelling rising levels of demand for logistics space. Vacancy rates in the U.S. and Europe continue to edge lower and rents are continuing their upward trajectory in all three regions, reaching an all-time high in the U.S.

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logistics

Six

Five

U.S. multifamily sector slows

Following a wave of new supply and consistent gains in rents over the last decade, annual rental growth in the U.S. multifamily market has slowed, dipping below 3 per cent for the first time since 2010. Despite this slower pace, steady economic growth and low unemployment mean that moderate gains are expected to continue.

JLL Clocks - Global Residential Rents

Click on a regional clock to view city positions

U.S.: Multifamily Residential; EMEA: Central City; AP: Prime Residential
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Global Market Perspective, August 2017

Chapters

Compare Markets

Investment Market

Investment Market

Investment volumes remain firm
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Corporate Occupier Markets

Corporate Occupier Markets

Human experience driving corporate real estate strategy
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Offices

Offices

Market conditions remain robust
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Retail

Retail

Structural change increasingly evident in global retail markets
Read More

Warehousing

Warehousing

Logistics rents surging
Read More

Hotels

Hotels

Hospitality sector performance resilient
Read More

Residential

Residential

U.S. Multifamily sector slows
Read More

Downloads & Contacts

Global Market Perspective, August 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

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