JLL has issued its 2018 Global Market Perspective, updated as of February 2018. Highlights as reported:
- Record-breaking 2017 highlights robust fundamentals: Global real estate markets broke several records in 2017, with investment and leasing volumes at their highest levels for a decade. The impressive end to the year was a testimony to the robust fundamentals across many real estate markets.
- Widespread economic growth sets up strong 2018: The global economic upswing provides a strong platform for 2018. Buoyed by the outlook, investor appetite shows no signs of abating, while businesses are expanding their space requirements. However, after such a stellar 2017, it will be difficult for the global real estate market to match last year’s impressive performance.
- Co-working transforms real estate dynamics: The burgeoning flex space and co-working market is transforming real estate dynamics across the world, and is fast becoming an important part of wider corporate real estate and portfolio strategies. Continuing global expansion and rapid growth by a number of the key co-working space providers is fuelling investor demand, as well as JV and acquisition activity.
- A banner year for logistics. Absorption levels in the logistics sector were at record levels in 2017, while vacancy fell to historic lows. Rental growth momentum in 2018 is expected to continue due to buoyant demand supported by e-commerce, an increasing emphasis on city logistics and a lack of modern vacant space.
- Retail focuses on asset enhancement: Retailers are adapting and re-evaluating their existing physical space in response to the structural changes impacting the sector. There has been a notable acceleration in new business models as owners invest to create attractive mixed-use destinations for a new kind of consumer.
