Asia Pacific’s logistics markets are experiencing a shift as supply constraints and tenant-favourable conditions diverge across the region, according to Cushman & Wakefield’s Waypoint 2026 report. The report highlights that 47% of markets in the Asia Pacific (APAC) region favour tenants, up from 33% in 2025, although this varies significantly due to differing supply and demand dynamics.
In supply-constrained markets like Australia, Japan, and Singapore, competition for space is intensifying, with vacancy rates expected to decline due to limited development pipelines. In contrast, regions such as India and mainland China continue to offer more tenant-friendly conditions, thanks to higher levels of new supply providing occupiers with greater flexibility.
Dennis Yeo, Head of Investor Services and Logistics & Industrial, Asia Pacific at Cushman & Wakefield, noted, “Different markets across APAC are experiencing different stages of growth, fuelled by resilient occupier demand led by e-commerce and manufacturing. Supply constraints in markets such as Japan and Australia are driving competition, meanwhile continued availability in China and India is creating opportunity.”
The report also indicates that demand in APAC is anchored by e-commerce and manufacturing, with Southeast Asia emerging as a key growth hub. Countries like Vietnam, Indonesia, and Thailand are seeing increased occupier activity due to production shifts and regionalisation strategies.
Globally, the report forecasts a decline in tenant-favourable conditions from 52% in 2026 to 33% by 2029, as vacancy tightens and supply remains constrained. This shift is expected to lead to a rise in landlord-favourable markets, with 54% of global markets anticipating rental growth over the next three years.
