Heightened caution amid market uncertainty
Highlights from the report include:
- Quarterly net absorption fell for the second consecutive quarter in Q2 2025, amid subdued leasing demand and occupier caution as the impact of tariffs started to surface. Limited demand was mainly led by 3PLs in a handful of markets.
- While vacancy remained flat at 13.4% in Q2, the high vacancy environment is expected to remain in the medium term.
- Investment activity was varied across the region, as investors generally stayed cautious in Greater China. On the other hand, markets like Tokyo, Seoul, Sydney, and Melbourne noted strong demand and transaction activity.