Global Market Perspective
Global Market Perspective is 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.
5 key themes
1. Investor and occupier markets moving at different speeds
Easing economic growth is feeding through to real estate market activity, with investment and occupier markets now moving at different speeds. Momentum in global leasing has moderated from the peak levels in 2018, while investment volumes have registered new records.
2. Loose monetary policy supports low yield outlook
Interest rate cuts and asset purchases by major central banks have contributed to further declines in government bond yields. Monetary policy is expected to remain accommodative in 2020 and real estate continues to offer a healthy premium to most other asset classes despite yields being at record lows. The volume of capital raised by funds targeting real estate has reached all-time highs and investor conviction in the sector remains strong.
3. 2020 to mark global office construction peak
Office construction activity is expected to peak this year at close to 20 million square metres globally. While a lack of available space has been constraining occupier activity, the increase in new stock will gradually push up vacancy rates over the year and contribute to moderating rental growth.
4. Online retail shifts demand to urban logistics
Global logistics markets continue to see robust demand fuelled by further e-commerce growth and efforts by traditional retailers to shift towards omni-channel distribution models. Much of this new demand is concentrated on urban and last-mile delivery as companies race to get closer to the consumer. This is resulting in a greater focus on densification through the renovation of brownfield sites and construction of new types of facilities, such as multi-storey warehouses.
5. Retail moves towards a mixed-use future
Retail’s ongoing structural transformation is leading landlords to focus on repositioning retail centres from shopping-only properties to hybrid centres that also provide experiences and services. While this includes pure entertainment offerings such as restaurants, movie theatres and gyms, it also increasingly encapsulates the provision of working and living space.
Explore Sector Trends
Global commercial real estate markets defy expectations to set new record
Demand for flexible space transforming office markets
Global office demand slows amid uncertainty
Retail moves towards a mixed-use future
Growth in online retail shifts demand to urban logistics
Strong demand fundamentals for hotel sector
U.S. multi-housing market remains robust
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Global Market Perspective, February 2020
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.