HK logistic operators trade up for automation and efficiency, report says

CBRE expects warehouse space occupied by e‑commerce operators to triple by 2035.

Hong Kong is transforming into an international smart logistics hub, as operators prioritise advanced facilities featuring automation, higher ceilings, and energy‑efficient systems, according to CBRE.

The report said that sustained growth in cross‑boundary e‑commerce and high‑value goods such will create opportunities for Hong Kong’s logistics industry.

“As online retail sales continue to grow, we expect warehouse space occupied by e‑commerce operators in Hong Kong to triple by 2035,” said Marcos Chan, Executive Director, Head of Research, CBRE Hong Kong.

Against this backdrop, modern logistics real estate is increasingly focused on value‑added services, and occupiers seek institutional‑grade facilities with advanced specifications.

CBRE estimates that upgrading demand from these occupiers alone could reach up to 52 million square feet over the long term.

However, over half of the city’s purpose-built warehouses were built more than 30 years ago, 10% over 40 years old.

To fully capture these opportunities, CBRE recommends that the government adopt a flexible and forward‑looking approach to transforming logistics real estate.

This includes excluding ramp areas from land cost calculations, relaxing the double‑counting rule for high‑ceiling space, and allowing low‑density logistics developments in new growth areas.

CBRE also advises a phased development approach in the Northern Metropolis to ensure market stability whilst supporting brownfield relocations and encouraging the construction of diversified, modern logistics facilities.