Rental demand for premium logistics warehouses in some cities and regions exhibited a growth trend through H1 2025, supported by the combined impact of traditional e-commerce festival stimulus, continuous cross-border e-commerce expansion, and the cumulative effect of consumption-promoting policies, in turn driving a slight increase in rents and a decline in vacancy rates. Meanwhile, in areas with relatively weak industrial foundations, the issue of insufficient new demand remained severe, with significant downward pressure on market occupancy rates and rents. In the short-term, supply-demand imbalances and industry competition will continue to exacerbate rental pressures across the overall premium logistics warehouse market.
Despite investors maintaining a cautious attitude, the investment market in the premium logistics warehouse field still demonstrated resilience, supported by industrial restructuring optimization, precise policy implementation, technological innovation empowerment, and the release of domestic demand. When investors make strategic deployments, they are focusing on core indicators such as location advantages, tenant structure quality, and debt levels of underlying assets, with projects that are operationally stable and have strong anti-cyclical capabilities being more favored.
Chinese Mainland
- The total stock of premium logistics warehouse space on the Chinese mainland reached 129 million sq m in Q2 2025.
- Approximately 1.1 million sq m of new supply entered the Chinese mainland logistics market in Q2.
- The overall vacancy rate rose 0.8 percentage points q-o-q to record 17.8%.
- Overall average rents fell 3.1% q-o-q to RMB29.7 per sq m per month.
- Ahead, an additional 24.60 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 Q2 2025.
- The Hong Kong overall prime warehouse vacancy rate edged up 0.1 percentage points q-o-q to record 8.3%. The overall prime warehouse rental level continued to fall, for the third consecutive quarter, although the decline narrowed to 1.0% q-o-q, to record HK$14.0 psf per month.
- In the short term, prime warehouse rents are expected to face pressure in the coming quarters, and we forecast a rental decline of 8% in 2025.
Taiwan China
- Total premium logistics stock increased to approximately 1.24 million pings (4.11 million sq m) in Q2 2025.
- Incoming supply is expected to add 157,732 pings (521,427 sq m) of stock by the close of 2026, an increase of approximately 12.7%.
- Around 67% of stock is concentrated in Taoyuan City, close to Taoyuan International Airport. The average monthly rental level increased to approximately NT$700–NT$850 per ping.
Outlook
In the short term, supply-demand imbalances and industry competition will continue to intensify rental pressures in the overall premium logistics warehouse market. Landlords will continue to adopt the strategy of trading leasing space volume for lower rentals to maintain project occupancy rates at a healthy level.
In the future, tenant decision-making logic will gradually shift from a cost-driven to an industrial-value-orientated model. The value of warehouse space will be tied to regional innovation capabilities rather than merely location, requiring warehouse logistics operators to possess both spatial reshaping capabilities and industrial resource integration capabilities. They will also need to focus more on reducing full-cycle costs through smart operations and maintenance, rather than short-term rental income, to achieve a favorable rental ecosystem model.
