Asia Pacific Figures Q1 2024 (CBRE)

Office: A rise in site inspections and enquiries failed to translate to an increase in leasing activity in Q1 2024 due to occupiers' cost cautious stance and the first quarter historically being a quiet period for transactions. Occupiers are likely to retain a cautious attitude towards spending and location selection in the near term.

Retail: Leasing was dominated by expansion, with upgrading and relocation also picking up. Demand was led by the luxury and F&B sectors. Although retailers continue to be location sensitive, markets with tight availability are seeing demand spill over to secondary areas.

Logistics: Demand moderated this quarter during what is a traditionally quiet period for transactions. Leasing activity was constricted by stricter capital expenditure controls due to moderating sales growth. 3PL occupiers continued to display steady demand, supported by cost optimisation and outsourcing.

Investment: Asia Pacific commercial real estate investment volume fell by 4% q-o-q to US$24 billion, primarily due to a decrease in industrial investment. Delays to much anticipated interest rate cuts prompted investors to stay on the sidelines, with most buyers opting to wait for additional repricing opportunities as the negative carry situation persists.

This report was originally published in https://www.cbre.com/insights/figures/asia-pacific-figures-q1-2024