Asia Pacific Logistics Occupiers Focus on Expansion Amid Global Trade Uncertainty: CBRE Survey

Asia Pacific – June 26, 2025 – The majority of logistics occupiers (76%) in Asia Pacific are planning to expand their real estate footprint over the next three to five years, despite ongoing global trade policy uncertainty, according to CBRE’s 2025 Asia Pacific Logistics Occupier Survey.

The survey, which gathered insights from more than 380 companies across the region, reveals a long-term optimistic outlook tempered by short-term caution. While 69% of respondents anticipate improved business performance in the next two years, this reflected a decline from 81% in 2023. The findings also highlight a shift in occupier priorities, with greater emphasis on cost efficiency and strategic location selection amid evolving market dynamics.

Key Challenges

While economic uncertainty and cost escalation remain the top two challenges for logistics occupiers, this year’s survey shows a notable increase in concern regarding trade policies, which have triggered the market volatility.

Occupiers are becoming increasingly cost-conscious this year, with 78% identifying rent reduction as the primary driver for relocation decisions. Additionally, there is growing interest in strategic assets located near transportation hubs, customer bases, and the supply chain, as these locations offer operational advantages such as reduced transportation costs, enhanced supply chain resilience, faster time-to-market, and improved customer satisfaction.

“CBRE’s analysis shows that real estate accounts for just 3 to 6% of the total logistics cost structure,” said Michael Bowens, Head of Industrial & Logistics Leasing, Asia Pacific, CBRE. “We advise occupiers to focus on total occupancy costs, not just face rent, when planning their real estate strategies. This comprehensive approach includes factors like transportation, labour availability, last-mile efficiency, and inventory management.”

Expansion Hotspots

The survey shows that occupiers are most interested in expanding in India and the Middle East, followed by Southeast Asia. Overall demand is being driven by third-party logistics providers (3PLs) and e-commerce platforms aiming to meet rising consumer expectations, as well as manufacturers striving to diversify their supply chains.

Diverging Sentiment Between India and China

The survey highlights a stark contrast in sentiment between occupiers in India and China. In India, over 80% of respondents expect business performance to improve in the next two years, fueled by rising local consumption. In China, the appetite for logistics demand is slowing as occupiers weigh real estate decisions amid trade uncertainty and an influx of new space from construction completions.

“Economic headwinds and shifting trade policies continue to weigh on the near-term outlook for the Asia Pacific logistics market,” said Ada Choi, Head of Research, Asia Pacific, CBRE. “Occupiers must reassess business goals by balancing cost, efficiency, and future growth. Successfully navigating these cyclical challenges will position them for long-term expansion.”

To read the full report, click here.

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Notes to editors

CBRE’s 2025 Asia Pacific Logistics Occupier Survey was conducted from March to April 2025. More than 380 responses were received across Asia Pacific.

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