Asia Pacific Logistics Markets Diverge Despite 47% Tenant-Favourable Conditions as Supply Constraints Begin to Shift Balance

According to Cushman & Wakefield's Waypoint 2026 report, APAC remains the most tenant‑favorable region globally, with 47% of markets favoring occupiers, up from 33% in 2025, although conditions vary significantly as supply and demand dynamics continue to diverge across markets.

The report reveals that the Chinese mainland industrial and logistics market is currently characterized by tenant-favorable conditions driven by abundant supply and softer occupier demand. Significant levels of vacant stock across China's regional markets have reduced landlord pricing power, resulting in downward pressure on rents and heightened tenant leverage. On the other hand, China remains cost-competitive globally — with relatively low rental and labor costs supporting its position as a major manufacturing hub.

Looking ahead, the Chinese mainland market is expected to remain under supply pressure in the near term, with vacancy rates likely to rise further as new supply continues to outpace occupier demand growth. Nevertheless, despite near-term challenges, both landlords and tenants remain optimistic about the long-term fundamentals of the mainland China logistics market in lease negotiations.

Tony Su, Managing Director and Head of Industrial & Logistics Services, China, Cushman & Wakefield, noted:" The overall premium logistics warehouse market in the Chinese mainland maintained a stable trajectory. On the supply-demand side, landlords prioritized renewal quality and long-term asset value, favoring stable tenants such as manufacturers, while remaining cautious toward long-term leases at low rates. Tenants, in contrast, remained highly price-sensitive and valued expansion flexibility. Despite certain divergences in leasing strategies, both sides are negotiating based on an optimistic outlook for the market, reflecting a gradual recovery of confidence in the premium logistics warehouse sector."

APAC: Markets diverse, SEA emerging as a key growth hub

Supply‑constrained markets such as Australia, Japan and Singapore are experiencing increasing competition for space, with vacancy expected to decline as development pipelines remain limited. This is reflected in wider regional trends, where 43% of APAC markets are expected to see vacancy decline over the next three years, reflecting a gradual tightening of market conditions. In contrast, more tenant‑friendly conditions persist in parts of India and on the Chinese mainland, where higher levels of new supply continue to provide occupiers with greater flexibility. Across APAC, around a third of markets are expected to see vacancy rise amid ongoing development activity.

This divergence is reinforcing a market‑by‑market approach across the region. For landlords, aligning assets with high‑growth sectors such as e‑commerce, manufacturing, high‑tech and automotive, while ensuring buildings can support power demand and automation, is becoming increasingly important.

Dennis Yeo, Head of Investor Services and Logistics & Industrial, Asia Pacific, Cushman & Wakefield, said: "Different markets across APAC are experiencing different stages of growth, fueled 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."

Demand across APAC continues to be anchored by e‑commerce and manufacturing, alongside ongoing supply chain diversification, with Southeast Asia emerging as a key growth hub. Markets such as Vietnam, Indonesia and Thailand are seeing strengthening occupier activity driven by production shifts and regionalization strategies, while high‑tech and automotive sectors remain important sources of demand across North Asia. This is reinforcing the importance of modern, well‑located and future‑ready logistics facilities that can support evolving operational and technological requirements.

Global outlook: tightening conditions and rising costs

Globally, the report shows tenant‑favorable conditions declining from 52% in 2026 to 33% by 2029 as vacancy tightens and supply remains constrained, while landlord‑favorable markets are projected to rise from 26% to 39%, signalling a broader shift in market balance. At the same time, demand for high‑quality, strategically located assets continues to strengthen as businesses redesign supply chains to mitigate geopolitical, trade and climate risks, with global logistics rents now 36% above 2020 levels and 54% of markets expected to see rental growth over the next three years.

In the Americas, logistics markets are expected to see the most pronounced shift towards landlord‑favorable conditions as supply and demand rebalance across key U.S. hubs, while nearshoring continues to support demand in Mexico.

In EMEA, tightening vacancy alongside constrained development pipelines is narrowing occupier flexibility, while elevated energy costs are increasingly shaping location decisions and driving demand for energy‑efficient logistics assets.

Dr. Dominic Brown, Head of International Research, Cushman & Wakefield, said: "The next phase of the logistics cycle will be defined by preparedness. Businesses that embed resilience into their real estate strategies, through smarter use of technology, automation and energy‑secure assets, will be far better placed to navigate disruption and capture long‑term growth."


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About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 53,000 employees in nearly 350 offices and 60 countries. In Greater China, a network of 23 offices serves local markets across the region. In 2025, the firm reported revenue of $10.3 billion across its core services of Valuation, Consulting, Project & Development Services, Capital Markets, Project & Occupier Services, Industrial & Logistics, Retail, and others. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.hk or follow us on LinkedIn (https://www.linkedin.com/company/cushman-&-wakefield-greater-china).