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CBRE’s latest leasing market sentiment index reveals that overall leasing sentiment improved in Q4 2024, led by Japan and Korea, with the leasing pipeline to improve slightly across all sectors in 2025:

• Office – Lower appetite for expansion: There was a slight increase in enquiries and site inspections this quarter, with most occupiers opting for lease renewals over relocations. Selected markets, particularly those in Greater China, continued to report downward pressure on rents. Expansionary sentiment remained strong in Japan, but tenants in mainland China focused on downsizing to cut costs.
• Retail – Upbeat sentiment: Leasing sentiment remained positive, backed by strong expansionary demand. Hong Kong SAR and Australia reported a rebound in sentiment amid a rise in enquiries and site inspections. The leasing market continued to favour landlords, with rents witnessing steady gains.
• Industrial & Logistics – Tenant-favoured: Most surveyed markets remained in favour of tenants, consistent with the previous quarter. Rising incentives were also observed. Expansionary appetite is stronger compared to last year.

APREA’s flagship event, the Asia Pacific Real Assets Leaders’ Congress, highlighted Asia’s growing importance as a prime investment destination amidst global macroeconomic shifts.

Key points:

• Japan was spotlighted for its stability and opportunities in real estate, with rising demand in sectors like offices, logistics, and residential markets. Innovations such as data centers and J-REITs with stable yields were also emphasized as attractive investments.
• India’s booming logistics and REITs and InviTs sectors, driven by strong domestic demand and liberalized regulations, make it a compelling choice for global investors seeking growth.
• Emerging sectors across Asia, including data centers, life sciences, and senior housing, were identified as promising opportunities, particularly as ESG considerations and technology integration reshape real assets.
• Despite challenges such as China’s economic headwinds and regional geopolitical uncertainties, the conference underscored the importance of adapting investment strategies and leveraging Asia’s growth story to navigate the evolving global real assets landscape.