Thought Leadership

CBRE’s latest leasing market sentiment index reveals that regional leasing sentiment is improving amid a rise in enquiries:

• Tenant enquiries and site visits registered an increase over the surveyed period. Leasing enquiries and inspections remained strong, led by retail.
• While expansionary demand continued to strengthen across the retail sector, there was a slight weakening in requirements for office and industrial space.
• More than half of the respondents believe that rents and incentives will remain flat. The remaining respondents were divided between those having a positive outlook for Singapore and Korea and those expecting a rental decline in Greater China.
• Most major markets reported stronger leasing sentiment. Sentiment in Japan entered positive territory for the first time since 2020, while both Hong Kong SAR and Australia saw sentiment rebound from negative territory. Mainland China was the only market to witness negative sentiment, indicating that this market will require more time to recover.

This report was originally published in https://www.cbre.com.sg/insights/asia-pacific-insights/apac-leasing-market-sentiment-index

The MFIA Quarterly discusses an overview of Japan’s economy, Japan’s real estate market conditions, demography and economic growth.

What we know is that the global commercial real estate (CRE) sector, like many sectors, faces significant near-term headwinds. In Asia Pacific, while the economy remains resilient, the CRE investment market is in the middle of a reset given interest rate uncertainty, tighter lending conditions, and a challenging global environment.  However, we also know that the CRE sector will recover. In fact, historically, the strongest vintage years in terms of CRE returns are the ones that follow periods of dislocation and financial stress.

This report provides a glide path from here to there. That path will not be without challenge; it is therefore just as important to address the near-term challenges as it is to conceptualise the path to clear(er) skies. Our approach to investing is predicated in part on positioning for the future and not missing out on thematic and demographics that will drive Asia Pacific in the next decade.

The office sector is currently going through global structural change as organisations seek to adapt their physical spaces to new ways of working and adjust their corporate real estate decision making.  Our ‘REWORKING’ series examines decision-making for occupiers under four key considerations: Cost, Carbon, Culture and Community – under which the changing demands, needs and impacts on office spaces and strategies can be examined.