Asia Pacific Figures Q1 2026

Investment and leasing activity broadly firm as impact of Middle East conflict yet to materialise

• Office: Occupier sentiment remained resilient in Q1 2026, with leasing activity in most markets yet to feel a material impact from the Middle East conflict. Asia Grade A net absorption totalled 17.3 million sq. ft. NFA, up 7.8% q-o-q and broadly on track with 2025 levels.
• Retail: Leasing sentiment was resilient as rising retail sales and strong international tourist arrivals provided retailers with the confidence to expand. However, the Middle East conflict prompted some retailers to turn more cautious toward real estate planning. 
• Logistics: Despite a strong rebound in exports, leasing momentum slowed in Q1 2026 after a relatively robust previous quarter. Flight‑to‑quality demand underpinned activity in mature markets, with both Greater Tokyo and Greater Osaka recording strong take-up.
• Investment: Asia Pacific commercial real estate investment volume fell -9% q-o-q to US$46.2 billion in Q1 2026, pulling back slightly from the previous quarter’s record high. On an annual basis, however, volume increased by 18% y-o-y. While geopolitical tension and a less accommodative interest rate environment amid inflationary pressures may drag on investment activity, favourable occupier market fundamentals should shore up investor confidence.