What vacancy trends do APAC markets expect over three years?

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APAC Markets Anticipate Vacancy Declines Amidst Tightening Conditions

Over the next three years, 43% of Asia Pacific markets are projected to experience a decline in vacancy rates, indicating a gradual tightening of market conditions across the region. This trend contrasts with certain areas, such as parts of India and mainland China, where higher levels of new supply are expected to maintain more tenant-favorable conditions and offer occupiers greater flexibility. Overall, approximately one-third of APAC markets are anticipated to see an increase in vacancy due to ongoing development activities.
Declining Vacancy in Supply-Constrained Markets

Markets like Australia, Japan, and Singapore are facing increasing competition for logistics space, with limited development pipelines contributing to the expectation of declining vacancy rates. This tightening is a significant regional trend, with a substantial portion of APAC markets moving towards reduced availability.
Persistent Tenant-Favorable Conditions in Specific Regions

Conversely, India and mainland China are expected to continue offering tenant-friendly environments. This is primarily driven by significant new supply entering these markets, which inherently provides occupiers with more leverage and choices regarding space acquisition.
Rising Vacancy Due to Development Activity

Despite the overall trend towards tightening, a notable portion of APAC markets, around one-third, are forecasted to experience an increase in vacancy. This is directly attributable to ongoing development projects that are adding to the available stock of logistics facilities.

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What vacancy trends do APAC markets expect over three years?

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