Business Insights | Retain Logistics Tenants in 2026 with Sustainability and Technology

Market Dynamics and Evolving Tenant Priorities

Industrial assets have long delivered stable returns in Hong Kong, outperforming more volatile office and retail sectors. Yet occupier priorities are shifting rapidly. Beyond competitive rents and flexible terms, sustainability and technology now heavily influence leasing decisions in a market where warehouse vacancy reached 13% in Q4 2025.

With new premium logistics supply expected to enter the market from Q1 2026 onwards, combined with ongoing land constraints and global trade uncertainties, landlords should adopt proactive tenant retention strategies to protect occupancy and rental levels.

What Modern Occupiers Demand

E-commerce, third-party logistics (3PL), and cross-border supply chain players increasingly seek spaces with strong employee amenities, landlord-supported sustainability initiatives—such as renewable energy adoption—and robust building certifications. Above all, tech-readiness is non-negotiable to support 5G, AI-driven inventory, voice-directed warehousing, and robotics.

Leading warehouse users illustrate this clearly. Cainiao (Alibaba’s logistics arm) deploys AI-optimised warehouses with automated guided vehicles (AGVs), IoT tracking, and high-density robotics, requiring seamless IoT infrastructure and energy-efficient systems. DHL Express, expanding its Central Asia Hub, relies on AI routing, advanced sorting, and plug-and-play robotics, alongside EV charging and resilient connectivity.

These users actively favour Prime or upgradable Second-Tier assets that enable scalable automation and sustainable operations—making digital connectivity a key leasing driver.

Overcoming Barriers in Second-Tier Assets

Many assume sustainability and tech upgrades suit only modern Prime industrial/logistics buildings. In reality, most of Hong Kong’s industrial stock is Second-Tier, often over 30 years old and in revitalisation zones. These assets present prime opportunities for OpEx savings and leasing uplift as automation demand grows under the government’s Action Plan on Modern Logistics Development.

WiredScore Industrial Certification

WiredScore Industrial certification independently assesses digital connectivity—covering high-speed internet, mobile coverage, resilience, and future-readiness. Already adopted for offices in Hong Kong by developers like Sino Group and Swire Properties, its framework also aligns with industrial needs: IoT-enabled energy management, automation, and real-time monitoring. It advances sustainability goals through optimised energy use, EV infrastructure, and integration with green building certifications for benchmarking measuring and reporting on net-zero pathways, such as GRESB and LEED.

Source: WiredScore Inc.

Tangible Upgrades Landlords Can Implement

To achieve strong WiredScore ratings and attract premium tenants, landlords can pursue targeted, cost-effective enhancements—even in older buildings––creating immediate leasing appeal:

Proven Benefits from Early Adopters

UK firms pioneering technology and sustainability value creation strategies show clear results. SEGRO secured the world’s first WiredScore Platinum for industrial at SEGRO V-Park Grand Union in London, showcasing high-speed fibre, strong mobile signals, EV charging, and real-time monitoring—drawing tech-reliant tenants. Major owners including Hines, Panattoni, and Prologis in Europe are now certifying portfolios to differentiate assets and meet automation demand.

Value Creation for Owners and Tenants

For Hong Kong owners, these upgrades create compelling propositions for logistics and e-commerce tenants, reducing downtime, boosting retention, and lifting valuations in a softening rental market. Tenants gain future-proof spaces that support innovation and sustainability mandates. For older stock, digital certification removes barriers, proving revitalisation drives both efficiency and competitiveness.

Conclusion

Leveraging WiredScore Industrial certification integrates digital infrastructure into sustainability strategies, positioning Prime vs. Second-Tier assets for long-term success. As Hong Kong’s industrial sector faces increased competition from new supply in 2026 and beyond, this proactive tenant retention approach ensures owners protect and grow occupancy while future-proofing portfolios in a technology-driven landscape.


CBRE’s ESG & Sustainability Advisory team advises logistics sector building owners on asset enhancement strategies.

Contact us to explore WiredScore Industrial certification.