• The trade environment continues to strengthen. High freight forwarding costs mean traders are looking to utilise more warehouse space to protect margins.
  • Ongoing power shortages in mainland China highlight the risk of weaker export growth, which could drag on logistics demand in the near term.
  • While leasing demand remained strong in Q3 2021. reduced space availability led to a drop in leasing volume compared with the previous quarter.
  • Retail and F&B-related occupiers drove demand, while tech and telecom firms were also observed to be seeking space.
  • Retailers are expected to become more proactive in securing both retail and warehouse space in the coming months as fundamentals improve.
  • A further decline in warehouse vacancy underpinned steady rental growth in Q3 2021.
  • With space availability set to remain for longer, further rental growth in expected over the next 6-12 months.