Asia Pacific Logistics Users Plan to Expand Warehouse Portfolio in 2023
A recent survey conducted by CBRE in Asia Pacific revealed that logistics occupiers in the region have plans to expand their warehouse portfolios over the next three years. The focus is on acquiring high-quality facilities located in prime areas near customers and public transport.
The survey covered 120 companies in Asia Pacific, and 68% of them expressed intentions to acquire and occupy more logistics space in the coming years. While this figure is slightly lower than the 78% recorded in 2021, the demand for logistics space remains strong, especially among omnichannel retailers, manufacturers, and third-party logistics service providers. High value-added industries are also expanding their logistics footprint in the region to diversify their supply chains.
The survey highlights that occupiers are prioritizing locations near customers and accessible to public transport, indicating their willingness to pay more for better locations to offset transportation costs and potential disruptions. Warehouse automation is identified as the top measure to enhance supply chains, reflecting occupiers’ efforts to boost efficiency and address rising labor costs.
Occupiers are also increasingly concerned about sustainability, prioritizing future-proof facilities with green energy supply and electric vehicle charging stations. Short-term leases and flexibility for expansion are crucial elements of future lease management, as occupiers seek to assemble more agile real estate portfolios in response to prolonged macroeconomic uncertainty and supply chain complexity.
On the investor side, while logistics remains the most preferred asset class in Asia Pacific, interest has slightly diminished compared to three months ago. As yield expansion slows, investors may consider monetizing earlier investments, especially those with limited potential for asset enhancement, to take advantage of current market conditions. CBRE’s Global Head of Investor Thought Leadership & Head of Research, Asia Pacific, Dr. Henry Chin, advises investors to focus on future-proof assets located in prime areas that cater to the growing demand for high-quality logistics facilities to improve the quality of their portfolios.
