Korea and other key markets see tightening vacancy and intensifying competition for prime logistics assets
Asia Pacific’s logistics markets are entering a more complex phase, with divergence across the region increasingly shaping both occupier strategy and investor positioning. According to Cushman & Wakefield’s Waypoint 2026 report, APAC remains the most tenant‑favourable region globally, with 47% of markets favouring occupiers, up from 33% in 2025, although conditions vary significantly as supply and demand dynamics continue to diverge across markets.
Supply constrained markets such as Australia, Japan and Singapore are experiencing increasing competition for space, with vacancy expected to decline as development pipelines remain limited. This is reflected in wider regional trends, where 43% of APAC markets are expected to see vacancy decline over the next three years, reflecting a gradual tightening of market conditions. In contrast, more tenant friendly conditions persist in parts of India and on the Chinese mainland, where higher levels of new supply continue to provide occupiers with greater flexibility. Across APAC, around a third of markets are expected to see vacancy rise amid ongoing development activity.
This divergence is reinforcing a market by market approach across the region. For landlords, aligning assets with high growth sectors such as e commerce, manufacturing, high tech and automotive, while ensuring buildings can support power demand and automation, is becoming increasingly important.
Dennis Yeo, Head of Investor Services and Logistics & Industrial, Asia Pacific, Cushman & Wakefield, said:
“Different markets across APAC are experiencing different stages of growth, fuelled by resilient occupier demand led by e-commerce and manufacturing. Supply constraints in markets such as Japan and Australia are driving competition, meanwhile continued availability in China and India is creating opportunity.”
Demand across APAC continues to be anchored by e commerce and manufacturing, alongside ongoing supply chain diversification, with Southeast Asia emerging as a key growth hub. Markets such as Vietnam, Indonesia and Thailand are seeing strengthening occupier activity driven by production shifts and regionalisation strategies, while high tech and automotive sectors remain important sources of demand across North Asia. This is reinforcing the importance of modern, well located and future ready logistics facilities that can support evolving operational and technological requirements.
Global outlook: tightening conditions and rising costs
Globally, the report shows tenant favourable conditions declining from 52% in 2026 to 33% by 2029 as vacancy tightens and supply remains constrained, while landlord favourable markets are projected to rise from 26% to 39%, signalling a broader shift in market balance. At the same time, demand for high quality, strategically located assets continues to strengthen as businesses redesign supply chains to mitigate geopolitical, trade and climate risks, with global logistics rents now 36% above 2020 levels and 54% of markets expected to see rental growth over the next three years.
In the Americas, logistics markets are expected to see the most pronounced shift towards landlord‑favourable conditions as supply and demand rebalance across key U.S. hubs, while nearshoring continues to support demand in Mexico.
In EMEA, tightening vacancy alongside constrained development pipelines is narrowing occupier flexibility, while elevated energy costs are increasingly shaping location decisions and driving demand for energy‑efficient logistics assets.
Dr. Dominic Brown, Head of International Research, Cushman & Wakefield, said:
“The next phase of the logistics cycle will be defined by preparedness. Businesses that embed resilience into their real estate strategies, through smarter use of technology, automation and energy secure assets, will be far better placed to navigate disruption and capture long term growth.”
A Cushman & Wakefield Korea representative commented:
“The Korean logistics market is showing signs of stabilization as supply pressures have gradually eased since the pandemic. Amid sustained demand from 3PL providers and e-commerce, the preference for large-scale core assets in prime locations is growing even stronger, and some cold-storage facilities are expected to be converted to ambient-temperature use to meet market demand.
At the same time, limited new supply is elevating the importance of modern, high-specification facilities. Assets that can support automation and increasing power requirements are becoming critical differentiators, reinforcing the need for more strategic and selective location decisions by occupiers.”
