Apac logistic occupiers more cautious, but most still looking to expand: CBRE survey
Logistics tenants in Asia Pacific (Apac) continue to be positive in overall business prospects, in spite of expanding cautiousness amid recurring trade policy uncertainty. According to CBRE’s 2025 Asia Pacific Logistics Occupier Report, near-term confidence amongst occupiers has declined this year, with 69% expecting business efficiency to improve in the subsequent two years, compared to 81% in 2023.
The survey, which gathered answers from over 380 companies across Apac in between March and April, found that occupants in China predominantly steered the more cautious sentiment, due to possible adverse effects from tougher US trade protocol. Almost 70% of respondents in mainland China assessed trade unpredictability as their leading difficulty in the next 2 years.
Graeme puts in that government-led infrastructure investments, integrated with growth by top-tier logistics players and robust capital inflows into modern logistics assets, are enhancing Singapore’s role in the worldwide supply chain.
In spite of the uncertain international trade setting, lots of tenants are looking beyond temporary market volatility, says CBRE. Some 76% of its questionnaire respondents showed strategies to expand their realty profile size in the following three to five years, signalling positive outlook across the tool- to long-term outlook and a solid hunger for growth, the firm includes.
In general, 44% of CBRE’s survey participants indicated trade-related regulatory challenges as a significant issue, up from 32% in 2023. Nonetheless, respondents continued to rank economic unpredictability and expense acceleration as the two most significant difficulties dealing with inhabitants in the following 2 years, at 60% and 56%, specifically.
CBRE’s survey additionally revealed a shift among occupants towards more cost-driven real estate techniques. Respondents placed lower rents and better lease terms as the top factors influencing relocations and lease renewals, whilst many are also seeking distance to transportation centers, consumer bases, and supply chains to boost functional effectiveness.
However, development desire differs across individual markets. Based on the survey answers, India, the Middle East and Korea documented the highest net expansion interest at 66%, 49% and 40%, specifically. Vietnam (34%), Singapore (33%) and the Philippines (33%) registered the next-highest interest levels, adhered to by Thailand (28%) and Australia (25%).
According to CBRE, Singapore continues to stand apart among logistics occupiers, especially for hi-tech production and life technologies fields. “Singapore remains to draw international occupants, due to its credibility as a strategically established, neutral, and stable logistics hub,” states Graeme Bolin, CBRE’s Singapore head of occupier and leasing for industrial and logistics services.
