Asia Pacific Figures Q2 2026

Investment normalises after robust first quarter while leasing retains strong momentum

• Office: While occupier sentiment, particularly among the TMT sector, remained resilient this quarter, Asia Grade A net absorption contracted slightly over H1 2026 as limited availability in mature markets constrained leasing activity. Rents edged up by 0.3% q-o-q in Q2 2026.

   

• Retail: Most markets reported solid retail sales in April and May. Leasing activity continues to be driven by F&B and fashion & apparel, with new market entry a key theme. Rents grew at a mild pace as levels in several markets are already at record highs and inflation is pushing up retailers’ costs.

   

• Logistics: Leasing momentum strengthened amid robust AI-fuelled demand, largely negating the impact of the Middle East conflict. While expansionary appetite remained intact, occupiers turned more cost-sensitive, lending little support to rental growth. Vacancy tightened.

   

• Investment: Asia Pacific commercial real estate investment volume fell 9% q-o-q to US$43.5 billion in Q2 2026, retreating from the previous quarter’s strong performance. On an annual basis, however, volume increased by 32% y-o-y. Despite its upward interest rate cycle, Australia reported the largest quarterly increase in investment volume, while mainland China logged the highest total amount.