Research Global | August 2026

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Global Real Estate Perspective - Highlights Investor and Corporate

Global real estate demand remains resilient

The conflict in Iran dominated the global economic narrative through the second quarter. The situation is still dynamic and disruption will take time to unwind, although impacts have been relatively limited so far and stronger growth is expected next

year. Despite the volatile outlook occupier demand continues to be resilient and growing in many major markets while direct investment activity rose further in the second quarter.

2

Overview

Global Real Estate Perspective - Highlights | August 2026

Global Real Estate Perspective - Highlights | August 2026

3

Global Capital Flows

Interest rates Capital markets continue to function through dynamic macroeconomic backdrop

Persistent inflation, driven in part by oil price pressures, is leading most central banks to maintain or increase interest rates. The European Central Bank (ECB) announced a 25bps increase in June,

while the U.S. Federal Reserve (The Fed) and Bank of England held rates steady. Meanwhile, the Reserve Bank of Australia and Bank of Japan are continuing with pre-existing tightening cycles. Although the dynamic macroeconomic environment remains on investors’ minds, it is not impairing capital markets’ activity levels or functionality as investors increasingly view volatility as structural rather than episodic.

Debt markets Credit markets remain a significant driver of transaction activity

Credit markets stayed highly active and competitive through the second quarter, propelling transaction activity. Initial spread movements following the onset of the Iran conflict have reversed, and liquidity is diversified across banks, insurance companies, agencies, CMBS and debt funds. Over 50% of new loan volumes in the U.S. carry initial terms of three years or less, reflecting a widespread preference for shorter-term capital which will lead to continued refinancing activity. European debt markets remain well capitalized, while lending is active and competitive across Australia, Japan and Singapore.

Pricing dynamics Asset pricing holding steady as investors closely monitor elevated bond yields

Asset pricing remained remarkably stable across geographies in the second quarter even as bond yields generally rose. Bid-ask spreads have widened on some transactions – in particular U.S. multifamily – where new supply continues to pressure performance, but pricing has not reset broadly. In Europe, most instances of expected yield compression are being deferred to 2027 and beyond, with some outward yield movement in the logistics sector. Pricing across Asia Pacific is mostly stable with interest rate increases largely factored into underwriting.

Global Real Estate Perspective - Highlights | August 2026

4

Investment activity Capital deployment continues to build

Global investment sales volumes for the second quarter increased by 28% year-over-year, reaching US$237 billion. Following a robust Q1, this helped to push first-half activity 27% higher

year-over-year to US$466 billion. Exceptionally strong debt markets, ample capital available to deploy and supportive sector fundamentals are contributing to these activity levels. Asia Pacific saw the largest year-over-year increase in Q2 (up 38%), followed by EMEA (up 27%) and the Americas (up 26%).

Direct investment by region, 2007 – Q2 2026

Source: JLL, July 2026

20 08

20 09

20 10

20 07

20 12

20 13

2 01

4

20 11

20 16

2 01

7

2 01

8

20 15

2 01

9

20 20

2 02

1

20 22

20 23

20 24

Q 2

20 25

U S$

b ill

io n

0

200

400

600

800

1,000

1,200

1,400

+26% Q2 2026 YoY

+27% Q2 2026 YoY

+38% Q2 2026 YoY

Americas

EMEA

Asia Pacific

Q 2

20 26

28%

20 25

Global Real Estate Perspective - Highlights | August 2026

5

Sector dynamics Positive property fundamentals support growth across sectors

Retail investment showed the strongest momentum of all sectors globally in Q2, with 38% year-over- year growth underpinned in part by grocery-anchored assets in the United States. Industrial and logistics volumes registered the second highest year-over-year growth of 36% as robust lender appetite enabled larger-scale transactions.

Capital trends Capital formation remains below potential Capital formation dynamics reflect a shifting market with increasing concentration among top- tier managers. The largest funds (those exceeding US$1 billion in final close size) accelerated their market share to 70% of total fundraising, demonstrating continued investor confidence in

Direct investment by sector, Q2 2025 – Q2 2026

Source: JLL, July 2026

proven platforms. The structural advantages underpinning commercial real estate – including its compelling relative value versus other asset classes and the entry of new capital sources – position the sector favorably for sustained activity. Investor strategies are increasingly centered on assets offering durable income streams and inflation protection, particularly within gateway markets where rental growth inflection points are emerging.

Healthcare

Special Purpose Facility

Hotels & Hospitality

Retail

Office

Industrial & Logistics

Living / Multi-housing

Q2 2026

Q2 2025

$0 $10 $20 $30 $40 $50 $60

8%

38%

24%

17%

29%

36%

266%

Global Real Estate Perspective - Highlights | August 2026

6

Property Sectors

Offices U.S. leads leasing activity higher to new post-pandemic peak

Global office leasing activity rose by 2% year-over-year in Q2, with growth in the U.S. and Europe offsetting declines in Canada and Asia Pacific. Volumes over the first half of the year increased by 1% on H1 2025 to a new post-pandemic high.

The global vacancy rate fell by 30bps during the quarter to 16.5%. New deliveries remain near record lows in the U.S., with completions set to fall by 60% this year. In Europe, new supply is expected to be at the lowest level since 2011, while Japan, Singapore and South Korea in Asia

Pacific are also seeing tightening conditions. As rents and fit-out costs rise, tenants in markets with the most limited new supply are increasingly looking to adjacent submarkets as well as renewals, extensions and flex solutions.

Global office gross leasing volumes, H1 2007 – H1 2026

23 markets in Europe; 61 markets in North America; 23 markets in Asia Pacific Source: JLL, July 2026

H 1

20 08

H 1

20 10

H 1

20 12

H 1

20 14

H 1

20 16

H 1

20 18

H 1

20 20

H 1

20 07

H 1

20 09

H 1

20 11

H 1

20 13

H 1

20 15

H 1

20 17

H 1

20 19

H 1

20 21

H 1

20 22

H 1

20 23

M ill

io n

sq m

H 1

20 24

H 1

20 25

Q 2

20 25

Q 2

20 26

U.S. EMEA Asia Pacific

+12% Q2 2026 YoY

+2% Q2 2026 YoY

-15% Q2 2026 YoY

U.S.

EMEA

Asia Pacific

0

5

10

15

20

25

Global Real Estate Perspective - Highlights | August 2026

7

Logistics Third party logistics and e-commerce companies driving robust demand across regions

Occupiers in major markets are increasingly accepting uncertainty as the new normal and acting on requirements. North America continued to outperform in the second quarter; take-up

rose by 46% year-over-year with broad-based expansion most evident in big-box space. In Europe, new requirements that entered the market in late 2025 are starting to convert into signed deals, helping to push leasing up by 20% over the year. Demand in Asia Pacific stayed healthy across most major markets with absorption rising by 4% year-over-year in Q2, supported by 3PL, e-commerce and manufacturing tenants.

Regional logistics demand, Q1 2019 – Q2 2026

North America: based on 55 city markets in the U.S. and 9 city markets in Canada; Europe: based on 13 national markets; Asia Pacific: based on 18 city markets.

Source: JLL, July 2026

M ill

io ns

sq m

Q 2

20 24

Q 2

20 25

Q 2

20 20

Q 2

20 21

Q 2

20 26

Q 2

20 19

Q 2

20 22

Q 2

20 23

0

1

2

3

4

0

2

4

6

8

10

12

0

5

10

15

20

25

30

Asia Pacific Net absorption

Europe Gross leasing

North America Gross leasing

+46% +20% +4%

Q 2

20 24

Q 2

20 25

Q 2

20 20

Q 2

20 21

Q 2

20 26

Q 2

20 19

Q 2

20 22

Q 2

20 23

Q 2

20 24

Q 2

20 25

Q 2

20 20

Q 2

20 21

Q 2

20 26

Q 2

20 19

Q 2

20 22

Q 2

20 23

5

Global Real Estate Perspective - Highlights | August 2026

8

Retail Leasing demand outweighing limited supply

Retail leasing activity remains strong in prime locations and top-quality assets globally, driven by robust retailer demand and years of minimal construction activity which has left vacancy at near-record lows in mature markets. However, demand across the broader market is polarized as properties in weaker locations face longer transaction times and softer rents. The U.S. recorded solid net absorption during the second quarter, prime European locations continue to thrive, and activity in dominant areas is healthy across many Asia Pacific markets.

Living Institutional capital increasingly targeting specialized formats and scalable platforms

Global living investment in the first half of 2026 rose by around 9% compared to H1 2025, with gains across the Americas, EMEA and Asia Pacific. Institutional investment continues to mature globally as capital increasingly targets specialized formats and platform scalability. On top of the over $114 billion in direct investment in the sector, several billion dollars were also deployed into entity-level deals.

Hotels & hospitality Resilient performance supports growing liquidity

Global hotel performance continues to be resilient with limited new supply supporting pricing power, albeit regional divergences are widening. Global hotel transaction activity rose by 29% year-over- year in Q2. Despite continuing challenges related to underwriting and financing assumptions, investor conviction in the sector remains strong as many adopt a longer-term horizon despite near-term market volatility.

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This report has been prepared solely for information purposes and does not necessarily purport to be a complete analysis of the topics discussed, which are inherently unpredictable. It has been based on sources we believe to be reliable, but we have not independently verified those sources and we do not guarantee that the information in the report is accurate or complete. Any views expressed in the report reflect our judgment at this date and are subject to change without notice. Statements that are forward-looking involve known and unknown risks and uncertainties that may cause future realities to be materially different from those implied by such forward-looking statements. Advice we give to clients in particular situations may differ from the views expressed in this report. No investment or other business decisions should be made based solely on the views expressed in this report.

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