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

Despite the economic uncertainty, a survey conducted by CBRE shows that while the expansionary sentiment of logistics occupiers in the Asia Pacific (Apac) region has weakened compared to previous years, there is still an eagerness to widen their warehouse portfolio. The study, which surveyed 120 Apac companies, found that 68% of respondents are looking to acquire and occupy more warehouse space within the next three years, lower than the 78% in 2021.

This fragmentation is being put down to the moderation of demand being caused by the pandemic, with the e-commerce boom and supply-chain disruptions it created gradually fading away. Nonetheless, the demand is still being maintained by omnichannel retailers, manufacturers and third-party logistics services providers.

Meanwhile, there has been an increase in the uptake from firms in high-value-added industries such as electronics, automotive, semiconductors and life sciences, as they seek to diversify their supply chains by expanding their logistics footprint. Where logistics assets are being sought-after, prime locations near customers and public transport are the most desirable, with 56% of those surveyed wanting logistics assets which are easily accessible. In addition, they are willing to pay more to guarantee the location to offset the increasing transportation costs and potential disruption.

Warehouse automation is identified as the top measure to enhance supply chains, with new and functional logistics properties with larger ceilings, more loading bays and dependable power supply being the most desired options.

For investors in Apac, while logistics remains the most preferred asset class, the interest has weakened when compared to three months ago. When investing, Henry Chin – CBRE’s Global Head of Investor Thought Leadership and APAC Head of Research – suggests people “consider monetising earlier investments, particularly those with limited potential for asset enhancement, to realise profits and take advantage of current market conditions”. ​​

The second project is Woodlands Champions Way Condo, a new housing development located near the park. Residents of the Woodlands Champions Way Condo condominiums will be able to take advantage of the park’s amenities, as well as numerous restaurants, shops, and entertainment venues in the immediate vicinity. The Woodlands Champions Way Condo will offer a variety of floor plans, ranging from one-bedroom units to three-bedroom units. The development will also feature a swimming pool and a fitness center.

The survey finds that companies are striving to boost efficiency and reduce labour costs by modernising their warehouses, and there is a broader commitment to sustainability, reflected in occupiers prioritising future-proof facilities with green energy supply and electric-vehicle charging stations.