Global commercial property leasing market momentum is slow: Report
Momentum in global property leasing markets slowed moderately in the first quarter of 2016 as occupiers carefully reconsidered relocation and expansionary plans, the latest research shows.
Overall leasing volumes were marginally lower, down 1% on a year on year basis but volumes in both Europe and Asia Pacific held up well, increasing by 14% and 7% respectively year on year.
The data from international real estate company JLL also show that leasing volumes in the United States fell by 10% year on year to the lowest level since the global financial crisis as concerns over the economy’s stability grew.
In the context of a weaker than expected first quarter, JLL has revised down its global projections for the full year and now forecast that 2016 leasing volumes will broadly match 2015 levels, with some upside potential of up to 5%.
Asia Pacific is projected to outperform the other regions, with volumes growing by around 10% to 15% in 2016.
The report says that a fear of a near term recession spooked many US tenants in the first quarter and, as a result, expansion plans were put on hold. Nevertheless, many corporates are still keen to move in order to accommodate record-level employment and changing workplace preferences.