The year 2012 started off with high hopes that the challenges faced by the global economy would be overcome and growth would accelerate. Instead, the difficulties intensified and the expected improvement got pushed back.
Nevertheless, the fundamental drivers continue to point to stronger growth. As solutions to the political-economic challenges are implemented and confidence returns, demand will build and lead to a much healthier economic climate.
Even though 2013 will get off to a slow start, Cushman & Wakefield is optimistic that the stage has been set for a significant turn-up late next year and a strong global rebound in 2014 and beyond. Read our Economic Pulse Forecast 2013 for global and regional analysis.
While opinions are still mixed, Cushman & Wakefield is now more optimistic that a sustained recovery is underway. In all sectors, the days of tenant power will soon be numbered in the prime markets as supply levels erode, but many secondary markets will remain under pressure for some while yet. Even there, however, it will be interesting to see which areas are first to be picked off by either occupiers or investors as prices rise and availability falls in the prime market.
The recovery is here and is likely to gain momentum as 2011 progresses. The entire region will benefit from stronger growth in the US, but all the major countries in the America's will be in full-fledged economic expansion mode. Healthy employment growth will contribute to declining vacancy in most markets, on average, and lead to a turn up in asking rents in the next 12 to 18 months. We are already seeing this trend take place in some markets.