Global Office Leasing Volume Up 44% In Q2

GLOBAL – Office leasing volumes across the world surged by 44 percent in Q2 2021 compared to the same period last year. However, it is still 36 percent lower than what was seen during the 2nd quarter of 2019, according to a newly published research by Jones Lang LaSalle (JLL).

In particular, the real estate consultancy revealed that office leasing volumes in all regions of the globe are still below Q2 2019 levels, with the United States lagging the most at negative 44 percent. This is followed by Europe (-32 percent) and Asia Pacific (-21 percent).

“Markets are in a multi-speed recovery dependent on vaccination rates and societal restrictions. While conditions in global office markets remain relatively subdued, the trend is now showing definite signs of improvement and further progress is expected in the coming months,” stated JLL in its new report entitled “Global Real Estate Perspective – Highlights”.

Aside from that, data from the real estate consultancy shows that the office sector accounted for 27 percent of the overall global property transaction volumes during the second half of the year. This is a positive sign given that the figure for the whole of 2020 was 31 percent.

However, JLL said that the corporate tenant scene is still in a transition stage, and the uncertainty over a return to normalcy remains high.

“Very few organizations will return to pre-pandemic ways of working and most are looking at a long-term strategy to continuously flex their approach and adapt to uncertainties,” it believes.

The real estate consultancy cited that based on a study it conducted in April 2021, 58 percent of businesses have not created a post-COVID future of work program, with return to the workplace planned for H2 2021 or beyond.