Asia Pacific Industrial & Logistics Trends Q4 2024

Leasing momentum in Australia picked up in H2 2024 following a slow start to the year. Occupiers are now more comfortable making commitments after previously delaying leasing decisions. Overall incentives have largely stabilised while the number of landlords offering capital subsidies has gradually decreased. High construction costs and slower planning approvals continue to pose a barrier to new development.
In mainland China, overall demand remains subdued as logistics space availability continues to rise, forcing landlords to adjust rents to shore up occupancy. Markets in the eastern and central parts of the country are reporting rising vacancy and declining rents due to challenging conditions, but the performance of cities in the south remains relatively healthy.
Occupancy rates for logistics and industrial land in the UAE have further improved since the beginning of 2024. This quarter witnessed a shift towards smaller space requirements, with most leasing enquiries involving sizes of circa 500 - 2,000 sq. m.. More international players are evaluating an entry into UAE’s logistics investment and development market, which was traditionally driven by homegrown developers.

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