Asia Pacific Leasing Market Sentiment Index - June 2025

CBRE’s latest Asia Pacific Leasing Market Sentiment Index reveals that overall leasing sentiment weakened in Q2 2025, with cautious optimism being observed for the leasing pipeline for the second half of the year:

• Office: Occupier sentiment softened amid uncertainty surrounding the business environment. Most markets reported a decline in tenant enquiries and site inspections. Leasing transactions were dominated by flight-to-quality relocations. Greater China continued to witness rising incentives and falling rents, while India and Japan remained strongly in favour of landlords.
• Retail: Retailers adopted a more cautious attitude towards real estate planning due to global trade policy uncertainty. Most markets saw enquiries and site inspections pull back from the previous quarter’s high level, with occupiers' more conservative approach also reflected in softer expectations for rental growth. Japan was the lone outlier, with respondents expressing stronger expectations for rental growth.
• Industrial & Logistics: A drop in enquiries and site inspections made for a stronger tenants' market in Q2 2025. Occupiers stayed cautious amid ongoing trade disruption, with muted demand seen in Hong Kong SAR and mainland China. The rental outlook remained subdued as more occupiers mulled over consolidation moves.