Occupiers’ appetite for Asia Pacific warehouse space slightly weaker than in 2021: CBRE

Logistics occupiers across Asia Pacific (APAC) continue to focus on widening their warehouse portfolio, despite on-going economic uncertainty. In a recent survey by CBRE, 120 companies across the APAC region were polled; 68% of respondents expressed the intention to acquire and occupy more warehouse space over the next three years. This is slightly lower than the 78% recorded in 2021. The e-commerce boom and supply-chain disruptions during the pandemic have seen a moderation in demand for warehouse space, as updated operational efficiency measures start to take priority.

Omnichannel retail, manufacturers, and third-party logistics service providers still remain supportive of increased demand. Many markets also saw a take-up from high-value-added industries, such as electronics, automotive, semiconductors and life sciences which are looking to diversify their supply chains.

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High-quality locations with good public access remain the most in demand. Ahead of managing transportation costs and disruption, 56% of survey respondents expressed preference for assets situated close to customers and easily accessible from public transport.

Warehouse automation was identified as the key measure to boost operational efficiency, with functional facilities high ceilings, multiple loading bays, and strong power supply being the most desired features. In addition, occupiers are more inclined to invest in green energy sources and electric-vehicle charging facilities in order to commit to a broader sustainability cause.

Investors in APAC, currently experience weaker interest in logistics assets, compared to three months ago. That being said, monetising earlier investments may become a viable option, and investors may benefit from taking advantage of current market conditions.

This survey conducted by CBRE is a clear indication that occupiers are striving to boost efficiency, while addressing rising labour costs, and making a commitment to having a sustainable future.