Storage consolidation drags logistics rents down 12.5%

The city remained more expensive than Singapore in US dollar terms. 

Logistics rents in Hong Kong fell 12.5% year-on-year in the fourth quarter of 2025 as cautious leasing and storage consolidation pushed vacancy to its highest level since the pandemic, according to Cushman & Wakefield.

Rents stood at $13.1 per square foot per month in the quarter, down 7.1% from $14.1 per square foot per month in Q1 2020. Its regional peer Singapore recorded cumulative rental growth of 17.2% over the same period.

Despite the decline, the city remained more expensive in US dollar terms, with current rents at $158.4 (US$20.20), compared with $131.72 (US$16.80) in Singapore.

Hong Kong’s wage cost index stood at 92.06, compared with a global sample median of 100.

The figures come as Asia-Pacific logistics markets become increasingly divided between supply-constrained locations and markets where occupiers have more negotiating power.

Cushman & Wakefield said 47% of the region’s markets were tenant-favourable, up from 33% in 2025. 

Around 43% are expected to record lower vacancy over the next three years, whilst about a third may see vacancy rise as new developments are completed.

Supply constraints in Singapore, Japan, and Australia are expected to increase competition for space, whilst Mainland China and parts of India remain more favourable to tenants because new supply continues to outpace demand.

However, Mainland China is facing high vacancy, weaker occupier demand and pressure on rents, the report said, adding that vacancy is expected to rise further in the near term as additional supply enters the market.

Demand across the region continues to come from e-commerce, manufacturing, automotive and high-technology companies, whilst Vietnam, Indonesia and Thailand are attracting occupiers shifting or diversifying production within Asia.