Office leasing demand continued to increase moderately from the previous year during Q3. Expansionary demand in North America pushed take-up higher, while longer deal timelines in Europe and Asia Pacific contributed to lower activity. Following on from a strong first half, global volumes over the first nine months of the year were at their highest level since 2019.

Future trends: Demand returning despite ongoing supply chain uncertainty

Short-term: The implications of new trade policies will continue to impact planning and inventory strategies into 2026 and beyond. Demand from 3PL and distribution companies will keep rising to support more agile outsourced distribution management, while deferred decisions will gradually return to the market.

Long-term: The longer-term shape of trade policies and supply chain reconfiguration is still evolving, which will slow overall decision-making. However, delayed transactions are adding to the future pipeline, while drivers including the regionalization of higher-value manufacturing, growing defence spending, rising e-commerce and urbanization are expected to underpin future growth.

The living sector is on track for a strong 2025, with investment volumes on course to reach pre-Covid averages. The U.S. is leading the way with the third quarter notching the highest deal activity of the year. Volumes have also risen strongly in Europe and Asia Pacific , where strong demand for purpose-built student accommodation (PBSA) assets has been evident.