Stable fundamentals in real estate markets despite economic uncertainty
The economic outlook remains volatile following the outbreak of conflict in Iran, with the implications still unfolding and uncertain. Even a swift resolution will leave lingering effects due to damaged infrastructure and disrupted supply chains. But the global economy was in reasonable shape in early 2026 with growth positive, inflation contained and interest rates near neutral, meaning it is well placed to rebound if the disruption eases.
Occupier activity was healthy but varied across markets and property types during the quarter. Despite longer deal timelines and declining new supply, requirements continue to increase in many industrial markets. Global office leasing was broadly level with the same quarter last year following a post-pandemic high set in 2025, while retailers are still expanding in prime locations.
Global capital markets exhibited continued growth in activity in the first quarter, driven by robust liquidity in debt markets, a continued uptick in transactions of scale and stability in pricing. Performance across property sectors remains strong, with office, industrial and logistics and retail posting the highest year-over-year growth rates. The overall interest rate policy environment remains supportive of commercial real estate transactions and investors are generally not deferring decisions in anticipation of any near-term policy shifts.
Continue reading at: Global Real Estate Perspective
Source: Jones Lang LaSalle (JLL)
Available at: Global Real Estate Perspective – May 2026