Occupiers favoured selective expansion during this period.
Logistics rental growth across Asia Pacific was generally subdued in the first half of 2026 as occupiers adopted more selective expansion strategies amid softer regional economic growth, according to CBRE.
The property consultancy said most markets recorded flat to modest rental growth in H1 2026, while Greater Tokyo saw a faster recovery as vacancy declined. Mainland China, Hong Kong SAR and selected Pacific markets, meanwhile, recorded rental declines as landlords took a more flexible stance.
CBRE said tenants were increasingly focused on cost-conscious renewals and relocations, with selective expansion or upgrades towards well-located or newly completed logistics assets. Its January forecast had anticipated that occupiers would prioritise renewals and consolidation into prime assets near city centres rather than aggressively expanding their footprints.
In supply-heavy markets, incentives and greater landlord flexibility are expected to remain prevalent, CBRE said.
The consultancy upgraded its rental outlook for Perth and Brisbane, which it identified as outperforming markets. Perth is benefiting from solid demand growth linked to population expansion, while Brisbane is seeing rental gains amid tight vacancy and easing speculative supply.
Several Indian markets also recorded rental growth in the first half. Hyderabad, Pune and Chennai benefited from incoming prime supply, while tightening availability in core Mumbai submarkets pushed rents higher. CBRE expects rental growth in India to remain modest as some industries continue to favour cost-effective alternatives.
In Japan, steady broad-based domestic demand is supporting rental growth in Greater Tokyo and Greater Osaka. CBRE also raised its outlook for northern Vietnam, where stronger export-driven manufacturing demand, particularly around Haiphong, is expected to support growth in the second half.
Shanghai’s rental forecast was also upgraded, with tenants using attractive rents to upgrade and consolidate into core locations.
The outlook was weaker across several Pacific markets. CBRE downgraded rental forecasts for Sydney, Melbourne and Auckland due to supply-side pressures. In Sydney, new supply concentrated around Western Sydney Airport has pushed vacancy higher and triggered broader market rebalancing. Melbourne rents have softened ahead of a supply increase expected in the second half, while Auckland rents have corrected as speculative stock has been slow to absorb.
Most tier I cities in mainland China also saw their rental forecasts downgraded, with vacancy expected to reach 25 per cent to 45 per cent by year-end. Guangzhou faces the steepest correction amid very high levels of new supply, while forecasts for Beijing and Shenzhen were also reduced, although CBRE expects supply pressures to ease from 2027.
Hong Kong SAR’s forecast was also downgraded. Despite strong take-up in the first half, CBRE said occupiers remain cost-sensitive amid an uncertain trade outlook, while landlords have cut rents to secure tenants, limiting prospects for a rental recovery.