Cushman & Wakefield has released its inaugural report, ‘Waypoint 2025’, highlighting significant changes in the Asia Pacific logistics and industrial real estate sector. The report, based on insights from over 120 markets globally, indicates a shift in power towards landlords due to constrained supply and rising costs, impacting occupiers, investors, and developers.
The report forecasts a decline in tenant-favourable markets globally from 52% to 28% by 2028, whilst landlord-favourable markets are expected to rise from 24% to 35%. In Asia Pacific, the market is currently balanced, with 24% favouring landlords and 33% favouring tenants. However, this balance is expected to shift, with tenant-friendly markets growing to 38% and landlord-favourable markets increasing to 33%.
Dominic Brown, Head of International Research at Cushman & Wakefield, noted, “Asia Pacific markets are diverging, with Australia and Southeast Asia seeing a shift towards landlord-favourable conditions.” Despite this, 62% of Asia Pacific markets anticipate rental growth over the next three years, driven by strong occupier demand and strategic manufacturing shifts.
The report also identifies general manufacturing, retail distribution, and e-commerce as key drivers of demand in the region. Dennis Yeo, Head of Investor Services and Logistics & Industrial, APAC, emphasised the need for market-specific strategies due to rising vacancies in some subregions.
Overall, ‘Waypoint 2025’ underscores the importance of resilience and diversity in supply chains to navigate market changes effectively. The full report is available for further insights into regional market conditions and projections.
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