Asia Pacific’s logistics markets are experiencing a divergence, with tenant-favourable conditions expected to moderate as supply constraints shift the balance. According to Cushman & Wakefield’s Waypoint 2026 report, 47% of markets in the region currently favour tenants, up from 33% in 2025. However, supply and demand dynamics vary significantly across different markets.
In China, abundant supply and softer occupier demand have led to tenant-favourable conditions, with significant vacant stock reducing landlord pricing power. Despite these challenges, China remains a cost-competitive manufacturing hub. Tony Su, Managing Director and Head of Industrial & Logistics Services China at Cushman & Wakefield, noted that landlords are prioritising renewal quality and long-term asset value, whilst tenants remain price-sensitive.
Conversely, supply-constrained markets like Australia, Japan, and Singapore are seeing increased competition for space, with vacancy rates expected to decline due to limited development pipelines. This trend reflects a broader regional tightening, with 43% of APAC markets anticipating a decrease in vacancy over the next three years.
Dennis Yeo, Head of Investor Services and Logistics & Industrial Asia Pacific at Cushman & Wakefield, highlighted the differing growth stages across APAC markets, driven by resilient demand from e-commerce and manufacturing sectors. Southeast Asia, particularly Vietnam, Indonesia, and Thailand, is emerging as a key growth hub due to production shifts and regionalisation strategies.
Globally, tenant-favourable conditions are projected to decline from 52% in 2026 to 33% by 2029, as vacancy tightens and supply remains constrained. Dr Dominic Brown, Head of International Research at Cushman & Wakefield, emphasised the importance of resilience in real estate strategies to navigate future disruptions and capture long-term growth.
