Vacancy rates for prime warehouse to stay elevated in 2026: JLL

Vacancy reached a decade-high of 10.1% in 2025.

Prime warehouse vacancy in Hong Kong reached 10.1% at end-2025, the highest level in a decade, with rents down 7.2% and capital values falling 10.3% for the year, according to JLL. 

 "Vacancy rates for prime warehouse will remain elevated next year due to limited demand amid structural economic changes," Joseph Lam, Head of Logistics and Industrial at JLL in Hong Kong.  

"Rents and capital values are forecast to decline by a further 5-10%."

Lam added the government should reaassess logistics demand and review logistics land supply to ease oversupply. 

"If Hong Kong aims to become a logistics hub for high-value goods, space requirements can be far smaller than for traditional FMCG (Fast-Moving Consumer Goods) products," he said.