Asia Pacific Figures Q3 2023
November 2, 2023 10 Minute Read
Office: Office net absorption rebounded over the quarter but overall demand remained relatively weak. Macroeconomic headwinds and ongoing market uncertainty prolonged the completion of leasing transactions as occupiers awaited relocation and CapEx approval from overseas headquarters.
Retail: Leasing activity was upbeat as retailers retained a cautiously optimistic outlook. Fashion and apparel retailers were a key source of demand in selected markets. Rents rose by 0.6% q-o-q as tourist-oriented cities including Hong Kong SAR, Singapore and Tokyo Ginza registered further gains.
Logistics: Demand was resilient despite the slowing economy as the acceleration of outsourcing logistics operations to 3PLs gained momentum. CBRE’s Asia Pacific Logistics Rental Index rose by 1.3% q-o-q, a slightly stronger rate of growth from the previous quarter.
Investment: Although investor sentiment remained weak compared to historical levels, commercial real estate investment volume slightly improved on a q-o-q basis to US$21.5 billion on the back of stronger activity in the hotel and retail sectors. Investment volume totalled US$67.9 billion over the first nine months of 2023, a decline of 28% y-o-y.