A slowdown in the momentum of new supply in Q3 2025, coupled with the gradual recovery of market demand, eased leasing pressures in the overall premium logistics warehouse market. However, rental and vacancy rates remained under pressure. Beyond proactively implementing rent reduction measures and offering flexible leasing options to enhance market competitiveness, landlords need to actively adopt diversified strategies — such as providing flexible leasing, renovation and upgrading, and improving supporting value-added services — to strengthen the overall attractiveness of projects, accelerate leasing transaction processes, and shorten property vacancy periods.
Chinese Mainland
- The total stock of premium logistics warehouse space on the Chinese mainland reached 132 million sq m in Q3 2025.
- Approximately 0.48 million sq m of new supply entered the Chinese mainland logistics market in Q3.
- The overall vacancy rate dropped 0.65 percentage points q-o-q to record 17.16%.
- Overall average rents fell 1% q-o-q to RMB29.4 per sq m per month.
- Ahead, an additional 22.05 million sq m of new supply is scheduled for completion by the end of 2027.
Hong Kong China
- Hong Kong’s total stock of premium logistics space remained at 35.3 million sq ft (3.27 million sq m) in Q3 2025.
- The Hong Kong overall prime warehouse vacancy rate rose notably to 10.6% in Q3, from 8.3% in Q2. The overall average prime warehouse rental level dropped by 3.4% q-o-q in Q3, marking the fourth consecutive quarterly decline, bringing the YTD rental adjustment to -9.4%.
- Looking ahead, prime warehouse rents are expected to face further downward pressure in the coming quarters, with a projected y-o-y rental decline of around 10% for the full year of 2025.
Taiwan China
- Total premium logistics stock remained unchanged from the previous quarter at 1.24 million pings (4.11 million sq m).
- Incoming supply is expected to add 366,454 pings (1,211,418 sq m) of stock by the close of 2027, an increase of approximately 29.5%.
- Around 67% of stock is concentrated in Taoyuan City, close to Taoyuan International Airport. The average monthly rental level increased to approximately NT$700 to NT$850 per ping.
Outlook
In the short term, as the momentum of new supply slows down, coupled with the gradual recovery of market demand, leasing pressure on the premium logistics warehouse market has eased to some extent. However, it will still face pressure in terms of rental and vacancy rates.
Beyond proactively implementing rent reduction measures and offering flexible leasing options to enhance market competitiveness, landlords need to actively adopt diversified strategies — such as providing flexible leasing, renovation and upgrading, and improving supporting value-added services — to strengthen the overall attractiveness of projects, accelerate leasing transaction processes, and shorten property vacancy periods.
