Asia Pacific

Still with all that in mind, JLL's report found the global economy has begun to improve at a "better-than-expected pace." For instance, according to the Manpower Employment Outlook survey both employment prospects and consumer confidence improved throughout Asia Pacific. There, hiring plans increased in every market expect Japan, with India, Singapore, Taiwan and Australia charting the highest number of prospects.

Despite an increase in leasing activity during Q4 2009, the office market continued to see rents decline. The markets of Chennai and Tokyo experienced the most significant decline, with rents decreasing 7%. On the other hand, Hong Kong and Shanghai both reported a 5% increase in rents when compared to Q3 2009. For the cities that do now have a large development pipeline, rents should begin to trend upward by the end of 2010.

2010 is likely to bring an investment increase throughout Asia Pacific. The JLL report states, "In particular, buoyant investor sentiment prompted prices for grade A property in Shanghai to jump 25 percent from Q3 to Q4 with yields compressing sharply by nearly 140 basis points.Domestic investors are still on the lookout for undervalued prime assets in anticipation of rental growth."

Europe

At the end of 2009, Europe reported its ninth consecutive month of increasing economic sentiment; this is an 18-month high. The economies here are moving into a growth phase now that businesses and consumers are more optimistic. Still many businesses are likely to remain cautious with plans to invest and employ more personnel.

Across the board, leasing volumes declined 25% in 2009 when compared to the previous year. Still the year also saw an improvement in activity. For instance investment volumes have increased for three consecutives quarters and are expected to increase by 20% in 2010.

Investors are also eyeing opportunities here, although it isn't an easy buy. "In the UK a lack of quality investment product has meant a significant amount of capital remains frustrated and primeinvestments are scarce. With such multiple bids for the best product, many markets are seeing a hardening of prime yields."