Occupiers’ appetite for Asia Pacific warehouse space slightly weaker than in 2021: CBRE
For investors in Apac, while logistics continues to be the most recommended asset class, interest is “not as strong” compared to three months ago, says Henry Chin, CBRE’s worldwide head of investor thought leadership and Apac head of research.”Because of the present slowing return development, investors may consider monetising earlier investments, specifically those with limited capacity for property upgrade, to realise revenues and take advantage of current market situations,” he includes.
Storage facility automation is recognized as the best action to boost supply chains, with brand-new as well as useful logistics properties with much higher ceilings, great deals of loading bays and dependable electricity supply being one of the most sought-after options.
However, expansionary belief has actually weakened compared to previous years. The report, which surveyed 120 firms throughout Apac, spotted that 68% of respondents intend to get also live in more storage facility area over the coming 3 years, less than the 78% documented in 2021. CBRE connects this to a balance sought after observing a spike caused by the e-commerce boost together with supply-chain interruptions at the time of the pandemic.
Premium logistics centers in core areas remain one of the most sought-after assets. Over half of the survey respondents, or 56%, prefer logistics assets that are near consumers and even available to public transport. Occupants are also happy to pay even more for better places to reduce the rise in transportation costs and even prospective disruption.
” The growing use warehouse automation throughout Asia Pacific is an obvious indication that occupiers are striving to enhance efficiency while attending to rising labour expenses,” claims Ada Choi, head of occupant study, Asia Pacific, for CBRE. “In addition, occupants are increasingly prioritising future-proof establishments, such as green power supply and electric-vehicle charging terminals, mirroring a more comprehensive dedication to sustainability.”
Regardless, interest continues to be supported by omnichannel merchants, manufacturers and third-party logistics service agencies. Furthermore, numerous industry have observed climbing take-up from firms in high-value-added industries like electronics, automobile, semiconductors and life sciences that are broadening their logistics presence in order to branch out supply chains.
” As Covid-19 has indeed come to be endemic and supply continuity strain alleviates, occupants’ target has already moved from space attainment to functional efficiency improvements,” the survey record states.
A new survey by CBRE has recently found that despite continuous economical skepticism, logistics tenants in Asia Pacific (Apac) intend to widen their depot portfolio, with a concentration on top quality facilities located in prime spots near customers as well as common transportation.