APAC logistics rents rise 1.2% in H1 2026

Modern logistics facilities gain favour as occupiers become more selective.

Asia-Pacific logistics demand remained resilient in the first half of 2026, with occupiers increasingly prioritising supply chain flexibility, operational efficiency and modern facilities, according to Knight Frank's latest Asia-Pacific Logistics Highlights H1 2026 report.

Knight Frank said rents across the region rose 1.2% over the six months, while 15 of the 18 markets tracked recorded stable or higher rents year-on-year. However, occupiers are taking a more measured approach to expansion, focusing on optimising distribution networks and securing higher-quality facilities rather than simply adding capacity.

The property consultancy said trade-policy shifts and disruption to major shipping corridors are also reinforcing the importance of flexibility and optionality in logistics networks.

Rental performance remained uneven. Greater availability in parts of East Asia and selected developed markets has given occupiers more choice and moderated pricing pressure, prompting landlords to compete increasingly on asset quality, sustainability and functionality.

Brisbane recorded the region's strongest rental growth, with rents up 10.4% year-on-year and 8.6% in the first half of 2026. Knight Frank attributed the performance to sustained demand from logistics, retail and transport occupiers, alongside falling vacancy as excess supply was absorbed.

The report also highlighted Amazon Australia's plans for a more than A$750 million robotics fulfilment centre at North Maclean, which is expected to add 150,000 sq m of highly automated logistics space to the South East Queensland network.

India remained one of the region's most active occupier markets, supported by manufacturing expansion, rising domestic consumption and supply chain diversification. Knight Frank said occupiers are increasingly seeking institutional-grade facilities capable of supporting automation and more sophisticated distribution networks.

Across Southeast Asia, manufacturing diversification and supply chain realignment continued to support demand, with Vietnam benefiting from growing requirements from electronics manufacturers and logistics operators.

Singapore's logistics market remained broadly balanced, following strong rental growth in 2025. Prime logistics rents increased 6.8% year-on-year but were largely stable during the first half of 2026, with steady occupier demand supporting occupancy despite a sizeable development pipeline.

Knight Frank said Singapore's strategic connectivity, trade infrastructure and role as a regional distribution gateway continue to underpin demand for modern logistics facilities. Maersk's opening of its 1.1 million sq ft fully automated World Gateway II distribution centre in March was cited as an example of investment in advanced logistics infrastructure.

Looking ahead, Knight Frank expects occupiers to remain selective, with leasing decisions closely tied to operational requirements. The consultancy said flexibility, efficiency, sustainability and resilience will increasingly shape real estate decisions.

Tim Armstrong, Global Head, Occupier Strategy and Services at Knight Frank, said the Asia-Pacific logistics market had entered a more mature phase in which occupiers were focusing on "the type of spaces they occupy rather than simply securing capacity".

Armstrong said the broader availability of options and measured rental growth was giving occupiers greater scope to optimise portfolios, consolidate operations and upgrade to higher-specification facilities.

Meanwhile, AI is emerging as a new structural source of logistics demand, according to Christine Li, Head of Research, Asia-Pacific at Knight Frank. She said the region's expected emergence as a major data-centre hub, alongside an estimated US$800 billion of data-centre investment by 2030, is driving demand for physical infrastructure to support increasingly complex technology supply chains.

Li pointed to DHL, which already operates more than 30,000 sq m of dedicated data-centre logistics warehousing across Asia-Pacific and has committed to a further 130,000 sq m of expansion and build-to-suit development in Malaysia and Thailand.

Knight Frank expects the acceleration of AI and data-centre investment to generate further demand for specialised, high-specification logistics facilities capable of supporting these technology-driven supply chains.