Knowledge Hub

There is a growing emphasis on sustainability and environmental footprint in the transportation and logistics industries worldwide, with nearly 70% of companies from these sectors in the Fortune 500 having set a net zero carbon target, and around half aiming to achieve this objective by 2030 or earlier. This growing trend is also influencing logistics occupiers’ real estate decision-making worldwide.

In Asia Pacific, an increasing number of logistics occupiers are seeking more environmentally friendly warehouses and distribution centres. CBRE’s June 2024 Asia Pacific Leasing Market Sentiment Index found that energy-related features, particularly renewable energy supply and energy efficiency management, are most preferred. Many survey respondents indicated that occupiers also have a preference for facilities that possess some form of green certification, and that provide charging infrastructure for electric vehicles.

With more occupiers embedding sustainability into their real estate strategy, landlords and investors must accelerate the greening of their Asia Pacific logistics portfolios.

This Viewpoint explores occupiers’ most sought-after green features and explains how asset owners in the region should respond to rising demand for environmentally friendly logistics real estate.

With the Asia Pacific hotel market continuing to undergo structural change, hotel owners and operators are fine-tuning operational and branding strategies. Increased labour and utilities costs, limited new supply, and the prolonged peak of the interest rate cycle are among the driving factors.

Our latest report explores the key trends shaping the Hotels & Hospitality sector in Asia Pacific, including an analysis of the current market landscape, the latest activities of the major operators, asset management and investment trends, and ESG considerations.

Key trends:

• Operators keep daily rates high as a result of limited supply, elevated demand and rising labour costs.
• Major global operators continue to expand rapidly across Asia Pacific, with an increased emphasis on lifestyle brands.
• Investment remains robust despite debt-related headwinds, and investors maintain preference for upscale+ assets with rebranding opportunities.
• Adoption of sustainability and ESG initiatives continues; hotels with strong ESG initiatives are set to outperform.

In the real estate market, the living sectors have become a dominant force, commanding the largest share of global transaction volumes last year. Investments in multifamily, Build-to-Rent (BTR), student accommodation, co-living, and senior living have grown. Countries like Japan, China, and Australia are leading this growth, although challenges such as escalating construction costs and regulatory complexities remain. The living sector's resilience and potential for stable returns continue to attract significant investor interest, setting the stage for opportunities in the coming decade.