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Asia Pacific Industrial & Logistics Trends Q3 2024
October 10, 2024 5 Minute Read
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- Leasing demand in Hong Kong SAR remained subdued in Q3 2024 but momentum is expected to improve amid the recovery in trade business and growing deal pipeline. Rental performance continues to diverge, with rents for new leases declining but selected properties implementing hikes for renewals.
- In Korea, landlords of recently completed assets or properties about to come on stream are finding it challenging to repay project financing, forcing them to lease space at lower rents and more aggressive incentives. With financially-stable owners unwilling to offer substantial discounts to compete with distressed assets, and other landlords wanting to wait for supply to decrease in 2025, leasing activity has slowed.
- Take-up in Singapore remains healthy despite softer demand as landlords turn accommodative to secure tenants. Larger 3PLs are consolidating operations into flagship buildings and sites without any change to their overall footprint, leading to higher availability of smaller spaces and units in satellite locations. Looking ahead, landlords are expected to be more proactive in securing tenants, such as by offering more rent-free or fitout incentives.
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Michael Bowens
Managing Director, Head of Industrial & Logistics Leasing, Advisory Services, Asia Pacific
