Despite global trade uncertainties, Singapore’s logistics sector remains robust, with 76% of logistics occupiers in the Asia Pacific region planning to expand their real estate footprint over the next three to five years, according to CBRE’s 2025 Asia Pacific Logistics Occupier Survey. Singapore ranks as the second most attractive market in Southeast Asia, just behind Vietnam, highlighting its strategic importance.
The survey, conducted with over 380 companies between March and April 2025, reveals that factors beyond cost, such as Singapore’s reliable operating environment and strong regional connectivity, are crucial for logistics tenants. Graeme Bolin, Head of Occupier and Leasing, Industrial & Logistics Services at CBRE Singapore, noted, “Singapore continues to draw global occupiers, thanks to its reputation as a strategically located, neutral, and stable logistics hub.”
Infrastructure developments like the PSA Supply Chain Hub @ Tuas and Tuas Port are enhancing Singapore’s logistics capabilities. Recent facility launches by global players such as DHL Supply Chain and DP World further demonstrate occupier commitment. Investor interest is also strong, with capital flowing into modern logistics assets like Sunview Hub and DSV Pearl, supporting long-term growth.
The report highlights Singapore’s status as a major logistics hub, particularly for hi-tech manufacturing and life sciences sectors. An influx of new supply in 2025 is expected to create opportunities for lease renegotiations and meet pent-up demand. Across Asia Pacific, logistics occupiers are prioritising cost efficiency and strategic location, with 78% identifying rent reduction as a key driver for relocation.
Michael Bowens, Head of Industrial & Logistics Leasing, Asia Pacific at CBRE, advises occupiers to consider total occupancy costs, including transportation and labour, when planning real estate strategies. This comprehensive approach is reflected in Singapore, where strategic positioning and operational efficiency remain priorities amidst shifting trade dynamics.
“`
