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Introduction
The economic outlook is brightening in the major regions of the world.
Whether due to low interest rate policies finally having their intended
effect, stabilized commodity prices in some countries (Argentina,
Brazil, Canada and Russia), state-led efforts (China), or soaring equity
markets and rising confidence (the U.S. and Europe), the uptick in
near-term growth points to healthy demand for office space in most
markets around the world. Still, in most countries, labor markets in
major cities are tight, putting pressure on job creation. In others, a
new economic cycle is just beginning, with demand for office space
lagging behind. As overall global construction of office space has
gained significant traction in recent years, the risk of overbuilding in
some markets is real. In this report, we investigate how office market
conditions will evolve over the rest of the decade and highlight some
of the nuances underlying it all.