Caution Sets In: Only a Slow Recovery is Forecast for Global Office Markets Through 2013
While office markets around the world began 2011 strongly, a steady increase in uncertainty led to a major bump in the road to recovery taking shape during the third quarter of the past year. The outlook for 2012 is conservative as a result: relatively stable, perhaps, but slow and cautious when set against the backdrop of a weaker global economy.
For grade A space, however, major global office real estate markets are likely to undergo a delayed recovery rather than a renewed fall, and several key markets are, in fact, poised to see growth continue through 2012 and 2013. Indeed, while the overall forecast for growth has become more moderate, strong leasing fundamentals and limited supply will sustain better performance in some markets around the world, with a number having little or no new construction planned for either 2012 or 2013.
Increased leasing activity early in 2011 soaked up available supply, but this had only a modest impact on office rental leve