Knowledge Hub

Key Takeaways

• The data center market grew to new highs in 2023, with over 30GW encompassed in this report, including a more complete coverage of both colocation and hyperscale self-build inventory over last year’s edition.
• Power became a paramount concern, with the increasingly limited availability of large blocks of power across major markets.
• These power limitations have pushed data center operators to further evaluate untapped and smaller markets worldwide.
• Artificial intelligence proves to substantially grow demand worldwide, altering both site selection strategy and data center design.
• Despite challenges with power availability, larger markets have maintained momentum with their pipelines, through growing outlying submarkets

CBRE’s survey of more than 120 retail leasing market professionals in Asia Pacific reveals that retailers’ expansionary demand remains strong as they seek to revitalise their store networks post-pandemic.

Key findings include:

• 76% of retail brokers reported leasing enquiries for new setups, expansion and upgrading, indicating appetite for more space.
• More than two-thirds reported an increase in leasing enquiries and site inspections in Q1 2024, indicating that regional leasing activity is likely to remain strong in the coming months.
• As vacancy in prime areas contracts further, half of the respondents – the highest proportion since 2023 – expressed the view that retail leasing market dynamics are shifting in favour of landlords.
• Positive retail leasing sentiment across all Asia Pacific markets, with the strongest improvement observed in Japan.
• Retailers across Asia Pacific are displaying a very strong preference for prime core retail space.
• Most retailers plan to retain or increase their real estate budget and store footprint in 2024.
• Amid a global shift in consumer spending towards eating out and experiences, F&B remains the most active retail trade in Asia Pacific, with demand the strongest in Singapore and Southeast Asia.

This report was originally published in https://www.cbre.com/insights/briefs/asia-pacific-retail-leasing-sentiment-survey

There were two major factors affecting the Asian real estate market in the past few years, namely COVID-19 pandemic and interest rate hikes.

COVID-19 is no longer considered a public health emergency of international concern while stable or slightly lower interest rates from the Federal Reserve in 2024 is anticipated by many Asian markets. This is expected to increase the appetite for property investment over the next 12-24 months.

Key highlights in the Report:

Office Sector

• Investors are seeking more stable revenue streams and longer-term capital gains in Asia markets.
• There is an oversupply of office space in Bangkok, Beijing, Jakarta and Shanghai; and it will take time for the market to absorb.
• Rental levels in Bangkok and Beijing are under pressure while office rent in Seoul is rising due to limited new supply.

Retail Sector

• High street and prime retail malls in different markets have faced challenges during the pandemic, with the exception of district retail centres offering daily necessities for the neighourhood.
• High inflation in many Asian markets has impacted overall consumption.

Industrial Sector

• There is an oversupply of industrial space in Beijing, Seoul and Shanghai, making the industrial sector in these markets buyer and occupier’s market.
• Jakarta is expected to have a steady performance in the industrial sector driven by the electronic automotive industry.
• Bengaluru, Hong Kong and Mumbai have stable demand for logistics, warehouses and data centres.

This report was originally published in https://www.colliers.com/en-xa/research/2019-to-2023-apac-cap-rates-report

The Wealth Report’s unique data, expert insights, thought-provoking interviews and future views help shed light on the key issues affecting how you live, work, invest and give back.

In brief:

• Private capital is critical for real estate investment, representing a record 49% of all commercial transactions in 2023.
• With wealth creation turning positive again, the choices of UHNWIs will have a growing influence on real estate outcomes.
• 22% of wealthy individuals want to invest in residential property this year, and 19% in commercial property.
• The need for private capital to aid the repurposing and upgrading of global property have never been higher.

This report was originally published in https://www.knightfrank.com/wealthreport

Despite a challenging economic environment, data centres remain in focus for the commercial real estate industry in Asia Pacific, with notable market developments across the region.

CBRE’s latest Asia Pacific report explores key data centre investment trends and outlook for the sector in the region, and offers insights into the data centre occupier and investment market in Australia, Hong Kong SAR, Japan, Singapore, India and Korea.

Key regional trends include:

• Investor demand for data centres is strong, with a wide range of buyers seeking stabilised assets. However, there remains a lack of stock for sale.
• Prevailing high interest rates continue to weigh on data centre investment. However, investment volume in 2024 is expected to recover from last year’s low base, driven by activity in Japan.
• In addition to increased activity by hyperscalers and more corporates moving towards a co-location approach, there has been a surge in AI-related demand since late 2023.
• Power supply, especially a lack of renewable energy, is becoming a major challenge for future data centre development. 

This report was originally published in https://www.cbre.com/insights/reports/asia-pacific-data-centre-trends-q1-2024

CBRE’s 2024 Global Investor Intentions Survey reveals buyers’ and sellers’ preferred strategies, markets and property types. Highlights of the report include:

• Global investors expect to engage in more buying and selling activity compared with 2023 amid growing optimism that the real estate investment market conditions will improve.
• Although some further cap rate expansion is expected, this trend should start to reverse by midyear.
• While investors in most markets remain cautious in H1 2024, expected interest rate cuts by midyear should lead to improved commercial real estate investment activity in the second half of the year.

This report was originally published in https://www.cbre.com/insights/reports/2024-global-investor-intentions-survey