The overall premium logistics warehouse market remained under sustained pressure through 2025, with regional imbalances further intensifying. Leasing demand in the warehouse logistics market rose in some cities and regions. In low-demand cities, property owners continued to adopt price-for-volume strategies to maintain project occupancy rates. Ahead, as the momentum of new supply gradually slows, premium logistics warehouse market operators need to shift their focus from scale expansion to efficiency enhancement and sustainable development. High-quality projects in core regions have demonstrated prominent risk resilience, maintaining attractive rents while offering more value-added services to clients, thereby sustaining market competitiveness.
Chinese Mainland
- The total stock of premium logistics warehouse space on the Chinese mainland reached 136 million sq m in Q4 2025.
- Approximately 1.88 million sq m of new supply entered the Chinese mainland logistics market in Q4.
- The overall vacancy rate rose 1.11 percentage points q-o-q to record 18.3%.
- Overall average rents fell 1% q-o-q to RMB29.1 per sq m per month.
- Ahead, an additional 15.68 million sq m of new supply is scheduled for completion by the end of 2028.
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 Q4 2025.
- The Hong Kong overall prime warehouse vacancy rate rose by 0.8 percentage points to 11.2% in Q4. The overall average prime warehouse rental level retreated by a further 3.4% q-o-q and 12.5% y-o-y in Q4 to HK$13.1 per sq ft per month, the lowest level since Q4 2021.
- Looking ahead, despite the expected positive performance of total trade, occupiers will likely stay cautious, prioritizing cost efficiencies and operational resilience amid global supply chain disruptions.
Taiwan China
- Total premium logistics stock increased to approximately 1.27 million pings (4.21 million sq m).
- Incoming supply is expected to add 338,768 pings (1,119,893 sq m) of stock by the close of 2027, an increase of approximately 26.6%.
- 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, as the momentum of new supply gradually slows, premium warehouse market operators need to shift their focus from scale expansion to efficiency enhancement and sustainable development. High-quality projects in core regions have demonstrated prominent risk resilience, maintaining attractive rents while offering more value-added services to clients, thereby sustaining market competitiveness.
The overall premium logistics warehouse investment market has entered a critical phase of value restructuring — with enterprises leveraging asset securitization, REITs expansion, and industrial funds to activate existing resources, in turn creating more development opportunities for the entire market. With domestic economic recovery and accelerated expansion of public warehouse logistics REITs, the overall premium warehouse investment market is expected to achieve a moderate recovery.
