• Asia Pacific commercial real estate investment volume rose by 44% q-o-q to US$26 billion in Q3 2020, reflecting a broad-based improvement in market sentiment. Activity was led by Korea, which saw strong purchasing demand from local asset management firms.

 

  • Office leasing enquiries and site inspections improved over quarter but have not yet been converted into actual leasing deals. Asia Grade A quarterly net absorption registered just 7.2 million sq. ft. NFA, a level not far from 10-year lows. Activity was characterised by renewals, downsizing relocations and consolidation.

 

  • New retail store openings increased but most had been planned pre-pandemic. The wave of lease surrenders and permanent closures did not rise compared to the April-June quarter but many retailers remained under pressure amid the weak economy and phasing out of relief measures.

 

  • Overall logistics demand was stable on the back of solid growth by e-commerce platforms and related Third Party Logistics (3PL) firms. Weaker sectors included trade-related and physical-retail-focused occupiers.