Asia Pacific’s industrial and logistics sector continued to exhibit resilience in Q1 2026, thanks to steady demand from e-commerce, third-party logistics (3PL) operators and manufacturers.
CBRE’s Asia Pacific Industrial & Logistics Trends Q1 2026 report highlighted that recent oil price spikes represent a key risk, higher fuel and transport costs could eventually dampen demand. But so far leasing has held firm.
In Australia, many logistics tenants are opting to renew existing leases rather than move, driven by high fit-out costs and a shortage of new prime space. As a result, lease renewals continue to account for much of the activity in Australian hubs, with operators consolidating into new, modern facilities where possible.
Japan’s industrial market also remains upbeat. CBRE observes that the Greater Tokyo area is steadily recovering from prior supply gluts, with overall vacancy trending down, while Osaka has seen robust demand underpinned by domestic consumption.
Vietnam, registered strong absorption in the quarter. Demand from e-commerce, manufacturing and fast-moving consumer goods occupiers has kept the market healthy, even as a previous construction boom has left ample availability.
“Occupiers in Australia are opting for renewals amid rising fit -out costs and limited prime space availability. In Japan, demand remains upbeat on the back of solid domestic consumption. Vietnam is reporting healthy absorption after earlier supply hikes,” said Michael Bowens, Head of Industrial & Logistics Leasing Asia Pacific.
These trends suggest that industrial property remains one of Asia’s more defensive real estate segments.
CBRE analysts maintain a bullish medium-term outlook, noting that elevated land and construction costs should sharply curb new supply after 2027 – a dynamic that will help stabilize occupancy and support rents in core logistics markets.