Over 75% of APAC logistics firms plan to expand space

CBRE noted Singapore’s appeal extends beyond cost competitiveness.

Around 70% of logistics occupiers across Asia Pacific plan to expand their real estate footprint in the next three to five years, according to CBRE’s 2025 Asia Pacific Logistics Occupier Survey.

CBRE noted Singapore’s appeal extends beyond cost competitiveness. Its reputation as a stable, neutral, and well-connected hub continues to attract global occupiers navigating a complex international landscape.

“Singapore continues to draw global occupiers, thanks to its reputation as a strategically located, neutral, and stable logistics hub,” said Graeme Bolin, Head of Occupier and Leasing, Industrial & Logistics Services, CBRE Singapore.

He pointed to a three-pronged driver of growth: infrastructure investments by the government, expansion by top-tier logistics operators, and sustained capital inflows into modern logistics facilities.

Infrastructure projects such as the PSA Supply Chain Hub @ Tuas and Tuas Port are enhancing Singapore’s logistics capabilities.

Facility launches by major players like DHL Supply Chain and DP World reflect occupier confidence, whilst investor interest remains high in assets like Sunview Hub and DSV Pearl, according to CBRE Research.

Cost efficiency and location strategy are also increasingly shaping occupier decisions. The survey found that 78% of respondents identified rent reduction as a key factor behind relocation. Many also prioritise proximity to transportation hubs, supply chains, and customers to improve operational efficiency.

CBRE expects that an influx of new logistics supply in Singapore in 2025 will open up opportunities for occupiers to renegotiate leases and address pent-up demand, particularly in hi-tech manufacturing and life sciences—two sectors where Singapore maintains a strong logistics presence.

Although the survey shows a more cautious near-term sentiment—only 69% of respondents expect business performance to improve over the next two years, down from 81% in 2023—CBRE concludes that the logistics sector is still planning for long-term growth.

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