Momentum in the leasing markets slowed moderately in Q1 2016 as occupiers carefully reconsidered relocation and expansionary plans, with leasing volumes marginally lower (-1%) on a year-on-year basis. Volumes in both Europe and Asia Pacific held up well during Q1 2016, increasing by 14% and 7% respectively year-on-year. 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, we have revised down our global projections for the full-year 2016 and now forecast leasing volumes to 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%-15% in 2016.
Global office leasing volumes hold up despite uncertainty