1、EUROPEAN2026CONTENTSOFFICELIVINGLOGISTICSHOTELSRETAILDATA CENTRESECONOMYEUROPEAN OUTLOOK 20263NOTE FROM OUR CHIEF ECONOMISTA Year of Extraordinary ChallengesThe global economy faced extraordinary challenges in 2025.Tariffs rose to levels we havent seen in nearly a century.Immigration limits tightene

2、d labour markets.Geopolitical tensions flared in multiple regions.And policymakers everywhere seemed locked in a constant debate over inflation,interest rates and fiscal sustainability.At one point,global equity markets lost more than$12 trillion in value in just a few weeks.Recession odds spiked to

3、 nearly 50%.And yet,through all of that,the global economy kept expanding.Once all the data is finalized,global GDP is expected to have grown by 3.2%in 2025,which is just a tick below last years pace.Inflation eased across most regions.It drifted a bit higher in the U.S.,but only modestly so far.Lab

4、our markets cooled,but unemployment remains low across most economies.And with real incomes still rising,consumers held up better than expected.In short,the world economy absorbed a historic barrage of shocks last year and continued to push forward.AI as a Growth EngineOne of the biggest reasons for

5、 that resilience was the AI growth engine,which really took off in 2025.Across industries,generative AI and automation began driving measurable productivity gains,new investment innovation.That growth spilled directly into commercial real estate(CRE),especially data centres,which are now one of the

6、fastest-growing and most capitalized property types globally.AIs physical footprint and its need for power,cooling connectivity,is driving extraordinary demand for data centres and creating new requirements for both office and industrial space.We witnessed it firsthand.In London,AI-focused firms hav