Figures

Asia Pacific Figures Q1 2025

May 7, 2025 5 Minute Read

Office: Grade A office net absorption improved by 25% y-o-y to 17.2 million sq. ft. in Q1 2025, driven by solid upgrading and relocation demand in several Asian markets. Finance and technology continued to drive demand. Asia vacancy fell 0.4% q-o-q to 18.5% as most markets recorded declines. Rents were largely unchanged from the previous quarter.
Retail: Asia Pacific retail leasing sentiment remained optimistic this quarter, with more tenant enquiries and site inspections reported. F&B remained the key driver of leasing demand. Vacancy was flat in most markets while rents edged up by 0.5% q-o-q.
Logistics: While logistics leasing volume in major markets was solid, an influx of new supply and elevated global trade uncertainty led occupiers to adopt a more conservative approach. Leasing activity was primarily driven by domestic 3PLs, FMCGs, and retailers. Logistic vacancy continued to rise amid an influx of new supply.
Investment: Asia Pacific commercial real estate investment volume dipped marginally by 1% q-o-q to US$32.8 billion in Q1 2025. Activity was up 11% on a y-o-y basis. Transaction activity was boosted by an increase in deal volume in Japan and Korea. Office investment outperformed that in other sectors, rising by 42% q-o-q, with deals concentrated in Japan.