Global

The cautious tone of late summer was sustained through to the end of 2011 with reduced occupier activity in many markets. Corporate occupiers have reverted to a wait and see approach despite the fact that many have strong cash balances.

A slight upturn in demand would bring a fundamental and painful shift in market dynamics, potentially forcing corporate occupiers into expensive and compromised real estate decisions given the lack of quality supply in the markets. Are we in a hiatus amid unprecedented economic times? Or have we begun on the path to a new normal for corporate real estate which will lead to fundamental shifts in market behaviour? Evidence is increasingly pointing to the latter.

Year-to-date take-up is ahead of the equivalent period last year but there are now signs of slowing activity levels due to renewed economic uncertainty. Limited completions have led to choice being markedly tighter compared to last year. Reduced developer confidence and constrained finance will continue to limit speculative development. Occupier choice is, therefore, expected to be further squeezed in 2012. Prime rents have increased in many markets fuelled by strong competition witnessed during H1 and falling supply levels, however the rate of increase is now starting to abate.

Whatever your role, there is one word that characterizes corporate real estate today – change. Wherever you are located, there is one feature that will most shape your future working life – change.
Whoever you report to, there is one demand that your superiors will make above all others – change. Whenever you start a corporate real estate project, there is one issue that you need to keep in mind – change.

Throughout 2011, Jones Lang LaSalle sustainability professionals have been reflecting on global sustainability reporting and communication trends, as well as the latest developments of specific interest to the real estate sector. A summary of these trends is provided in this report.