Office net absorption remained healthy in Q4 2017, supported by flight to quality and flight to centre leasing activity in major Pacific and Southeast Asian cities. Demand was primarily led by expansion and relocation by tech firms, while the co-working sector and domestic financial companies were also active. Regional rental growth picked up to 0.9% q-o-q or 2.8% y-o-y.
Retail leasing demand continued to be led by the F&B trade, but faster expansion was recorded by cosmetics, lifestyle and entertainment retailers. Overall retail rents were unchanged in Q4 2017, ending the year in positive territory (+0.9%) as the correction in Hong Kong and Singapore stabilised.
The period saw robust demand for logistics space as a steady flow of activity from e-commerce, 3PLs and manufacturing companies boosted warehouse leasing in Greater Seoul, Greater Tokyo and China tier I cities. Rents were flat in Q4 2017 but closed the year with 0.9% y-o-y growth, although performance varied across the region.
Asia Pacific commercial real estate investment turnover rose to US$47 billion in Q4 2017, while full year turnover increased by 21% to US$136 billion. Both figures marked new quarterly and yearly highs amid robust investment activity in China, Hong Kong, Singapore and Japan.
Welcome to the first edition of Asia Market Intel magazine.
This inaugural issue explores a variety of trends and hot topics in the Asia industrial and logistics market, with CBRE experts providing market leading insights to ensure our clients are at the forefront of the sector.
Subjects include Industry 4.0 and last mile logistics. We also profile the latest edition of the Asia Pacific Industrial Occupier Guide and bring you up-to-date market news and trends from our national experts in their respective markets across Asia.
Thank you for your support and we hope you enjoy this first edition of Asia Market Intel magazine.
Welcome to the 2017 edition of the CBRE Valuations & Advisory Services Research Review, a joint publication by CBRE’s Valuations & Advisory Services and Research teams in Asia Pacific.
This new report series aims to capture the key trends and forces that are accelerating the pace of change in the commercial real estate sector; change which is transforming the way in which we value property and is reshaping the value proposition of different asset classes.
This edition includes summaries of CBRE Research’s China Investment Strategy 2020; The Evolution of Co-working; Investing in Emerging Occupier Trends; and How Active are Retailers in Asia Pacific? reports, together with additional content assessing what these trends mean for valuations across the region.
We thank you for your ongoing support and hope you enjoy this edition of the CBRE Valuations & Advisory Services Research Review.
Global Gateway Cities reports on office and retail investment trends in 24 global gateway cities, giving investors a comprehensive overview of pricing and market conditions. Using a mix of proprietary and key external data, CBRE Research provides an analysis of investment activity as well as economic, occupier, supply, rent and yield trends in the third edition of this report series.
The Asia Pacific Industrial Occupier Guide helps occupiers navigate around the differences between the various leasing practices in Asia Pacific. It includes profiles of countries across the region as well as an analysis of standard leasing attributes and protocols such as:
•Typical lease length
•Space measurement standards
•Occupancy cost analysis
•Sales and purchase terms
•Market and other lease provisions
•Websites and contact information within CBRE for additional market information
•Easy access to summary analysis by country for comparison purposes
The Industrial Occupier Guide draws upon the knowledge of CBRE professionals across the region who possess detailed knowledge of the leasing practices in their respective markets.
Please contact us if we can assist in any way. We welcome suggestions for improvements to future editions of this Guide.
Data centres are becoming as important a part of business operations as office, retail and industrial assets. This trend is being driven by several factors including the increasingly digital world, IT development and the importance enterprise IT strategy plays in business delivery.
How data centre operators and cloud service providers position themselves now will determine their competitive status in the medium to long term. Asia is significantly different to the U.S. and EU, meaning that formulating the right strategy based on reliable intelligence and advice will be critical for service providers and end users.
The Internet of Things (IoT) and Industry 4.0 are likely to fuel incremental data centre demand, given the intensity of their data and computing needs. The importance of manufacturing to many Asian economies means that the adoption of the most advanced production methods will be a priority for many countries.
This report by CBRE Research explains why Asia Pacific is set to become the most important data centre regional market in the medium term. However, there remain pitfalls for the unwary and significant challenges for global multinationals in a culturally diverse and swiftly changing landscape.
Welcome to the H1 2017 CBRE Advisory & Transaction Services Research Review, a joint publication by CBRE’s Advisory & Transaction Services and Research teams in Asia Pacific.
This edition includes articles on occupier trends in the legal sector; retailer strategy and expansion in Asia Pacific; the rise of co-working in Singapore; and the transformation of logistics facilities in Japan.
It also includes a recap of CBRE Research’s Seoul Office Market Tenant Survey, now in its fifth year.
We thank you for your ongoing support and hope you enjoy this edition of the CBRE Advisory & Transaction Services Research Review.
Aggregate colocation supply across the four major APAC markets (Hong Kong, Singapore, Sydney, Tokyo) totalled 865MW as at H1 2017. Singapore with 304MW in total supply, is the largest market constituting slightly more than one-third of total APAC supply. This is followed by Hong Kong, Tokyo and Sydney which each accounted for 26%, 22% and 17% of total supply respectively.
Market growth over the last 12 months has been considerable, with total IT capacity having grown by 17.6% as compared to a year ago. This has led occupancy to remain relatively flattish as the market comes to terms with this supply influx. H1 2017 however saw some respite supply wise, with very few notable new developments completed in the quarter. On the demand end, robust take-up in the Singapore and Sydney markets underpin APAC net absorption of 47.1 MW for the first half of 2017 which helped occupancy to edge upwards.
Take up is being driven by the hyperscale cloud sector, particularly from US based companies. Hyperscale demand has seen a significant increase in individual requirement sizes with requirement quantum of more than 5 Megawatts not uncommon. This helped maintain occupancy levels as a fewer number of transactions are required to fill existing shell or unfitted data centre space. The growth of hyperscale data centres is likely to continue, driven by major trends such as big data, internet of things and video and game streaming.
Welcome to the H1 2017 CBRE Research Review in the Pacific. This semi-annual publication connects you with an executive summary of research from CBRE’s Australia, New Zealand and Global research including website links to full reports.
Solid occupier demand expected for offices and logistics, but regional discrepancy likely to widen
Tokyo Grade A Office - Large-scale of new supply poses rental correction
Office: In 2018, vacancy rates are likely to start rising in Tokyo but are expected to continue tightening in regional cities. As such, Tokyo rents are forecast to see a downward correction, whereas regional rents have further upside.
Logistics: Greater Tokyo will see a 40% increase in its stock of large-scale multi-tenant logistics facilities. While demand is solid mainly driven by e-commerce, the difference in the supply-demand balance by area will become further pronounced.
Retail: Ginza high street rents are expected to continue trending down in 2018. However, with an expected recovery in demand from luxury retailers and an expansion of show-room strategies, rents may start to rise at the start of 2019.
Investment: While investor sentiment remains high, we look for a y-o-y drop in volume by about 6% to JPY3.7 trillion in 2018. Upside in rents is becoming limited for some assets and/or areas, making investors more cautious on pricing.
America’s Cup regattas have significant impacts on host city economies. The 2003 Auckland event generated a net expenditure of $523 million, and estimates range between $403 and $892 million for Cup related expenditure being generated by the 2021 event with an economic impact of up to $977 million possible.
The extent of economic benefits from the upcoming 2021 regatta can be framed in the context of the impact generators, the distribution of the impacts, and the wider regeneration and infrastructure development potential provided by the event. Central to CBRE’s interests in the event, we identify and estimate potential impacts of the upcoming America’s Cup in 2021 on Auckland’s hotel, retail and residential property sectors.