Figures
Asia Pacific Figures Q3 2024
November 8, 2024 5 Minute Read
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- Office: Regional Grade A office net absorption stood at 12.2 million sq. ft. NFA in Q3 2024, on par with the previous quarter. Persistently high fit-out expenses meant most occupiers opted to renew leases. Technology and financial companies remained the key engine of leasing demand. Rents fell by 0.3% q-o-q due to weakness in mainland China.
- Retail: Demand for core locations continued to drive leasing demand. Retailers’ cautious approach towards real estate planning; prolonged market studies; and less aggressive attitude to bidding up rents combined to ensure limited upward momentum in leasing volume and rents.
- Logistics: Softer leasing demand forced landlords to adopt a looser approach to lease negotiations and terms in Q3 2024. Demand from Third-Party Logistics (3PL) platforms remained the primary driver of leasing activity, with e-commerce demand weakening over the period. Rents fell by 0.6% q-o-q due to sharper declines in Greater China cities including Beijing and Shanghai.
- Investment: Asia Pacific commercial real estate investment volume rose 30% q-o-q to US$33.3 billion in Q3 2024, with Japan and Singapore driving gains. Investment sentiment and activity improved in the run up to September’s U.S. interest rate cut, with industrial and retail investment volume both logging especially strong increases.