For the real estate sector the final resolution of the US debt situation will have an important impact on market activity. Leasing and investment markets appear poised for healthy levels of activity this year, but how fast this occurs will depend critically on how and when all elements of the Fiscal Cliff are resolved.
Real estate at its core is a local business, but there are some clear global themes that can be drawn out of the current market. While there will be variations within and between regions, it is widely anticipated that the global office market will stabilize in 2013 with slow growth being the norm in early 2013. While some markets and regions will experience increased activity later in the year, noteworthy growth is not expected in the majority of locations until 2014 and beyond.
Change in the real estate industry is occurring at a rapid pace around the world and the role that the service providers play is clearly evolving. Both occupiers and investors are struggling with rising internal costs and changing business processes. Magnified by global economic uncertainty, the changes that are occurring have shifted the dynamics of the service provider industry.