Knowledge Hub

Over the course of 2024, CBRE has been tracking the emergence of a curious phenomenon across the Asia Pacific retail property market.

Despite slower retail sales growth, subdued consumer confidence, and a raft of negative headlines about certain retailers’ weaker-than-expected performance, retailers across a range of categories continue to aggressively seek expansion opportunities; a trend that is pulling down prime vacancy and driving up rents.

This Viewpoint explains the factors driving this trend and provides recommendations to retail landlords and occupiers seeking to chart a course through what is an increasingly complex marketplace.

Cushman & Wakefield released its 2023 Sustainability Report, highlighting the firm's global impact and progress across key sustainability areas. The report underscores the company's commitment to embedding sustainability in its operations and service offerings, helping clients achieve their goals while strengthening corporate reputation and mitigating risks. It reflects Cushman & Wakefield's focus on transparency, accountability, and continuous improvement in environmental, social, and governance (ESG) performance. Chief Sustainability Officer Jessica Francisco emphasized the firm's dedication to shaping a sustainable future, not only for clients and stakeholders but for the planet. Cushman & Wakefield is actively reducing its environmental impact, fostering a diverse and inclusive workplace, and enabling clients to meet their sustainability objectives. With ambitious future targets, the firm is focused on taking immediate action for a better, more sustainable future.

In the first half of 2024, Asia Pacific's data center markets reached nearly 12GW in operational capacity, adding 1.3GW of new supply, marking the largest recent increase. Demand matched this growth, signaling healthy market conditions. The region has 4.2GW under construction and 12.0GW in planning, a 2.8GW rise since the end of 2023. The top six markets—Chinese Mainland (4.2GW), Japan (1.4GW), India (1.4GW), Australia (1.2GW), Singapore (0.98GW), and South Korea (0.65GW)—account for 85% of the total capacity. Malaysia (Johor) led in growth with an 80% rise, followed by India at 28%. Both nations also show strong development pipelines. Japan, India, and Australia are seeing increased investment from cloud service providers and colocation players, with their overall capacities projected to reach 4GW or more. Chinese Mainland leads with 6.5GW, while South Korea’s growth remains modest due to regulatory changes. Across the region, policies focus on energy efficiency, innovative technologies, and carbon footprint reduction to support ongoing expansion.

Key Takeaways

• Office market firmly in recovery
• Corporate governance continues to improve
• Return of Chinese inbound to give tourism another boost
• Condo market still strong
• Logistics – ready for an inflationary environment
• Bank of Japan and the impact of higher rates