Global Market perspective
August 2019

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1. Global real estate markets slow but on track for robust 2019

Momentum in global real estate markets has slowed in 2019 as investment and leasing volumes moderate from last year's exceptional levels. However, investor and corporate occupier activity remain healthy and are on track to finish the year well above historic average levels.
In this podcast, we answer some of our clients’ questions and share our perspectives on the key global real estate market trends and outlook for the next 12 months.
 


 

   

2. Investment activity softens from near-record 2018 as investors maintain discipline

Although fundraising and capital available for deployment into real estate has set new highs, investment activity has dipped by 9% on a year ago. Global investment activity over the full year is likely to come in marginally lower than 2018 as investors maintain discipline, with a growing focus on defensive sectors driven by structural demographic, consumer and technological change.
 


 

3. Global office construction cycle ramping up

Office leasing demand has stayed healthy so far this year, though the pace is now running below the record-breaking levels of 2018. Construction activity is anticipated to peak this year with new office deliveries likely to be one-third higher than last year. This will ease constraints on occupier activity in some of the tightest markets while gradually pushing up vacancy rates during the second half of the year, causing rental growth to slow.
 


 

4. Another positive year for global logistics markets

Structural demand drivers including e-commerce and supply chain restructuring continue to support global logistics markets, with robust demand holding vacancy rates near record lows. Leasing momentum is expected to remain strong, albeit decelerating from recent all-time highs, which should continue to propel rents higher for the rest of 2019.
 


 

5. Retailers and landlords look to diversification and redevelopment

The retail sector is in a state of reinvention, with landlords and developers retooling shopping centres through redevelopment and diversification of the tenant mix. The ability to provide unique experiences and services will continue to be key in coming years as landlords seek ways to differentiate themselves and lure shoppers into physical centres.
 

Sectors

Investment

Global real estate investment softens in line with expectations.


 

Corporate Occupier

Technology firms drive large leasing deals.


 

Office

Office leasing volumes remain elevated but below exceptional levels of 2018.


 

Retail

Retailers and landlords look to diversification and redevelopment.


 

Warehousing

2019 another positive year for global logistics markets.


 

Hotels

Hotel investment remains attractive despite dearth of opportunities.


 

Residential

U.S. multifamily market vacancy rate reaches new cyclical low.


 

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Global Market Perspective, August 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.


 

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