Occupier sentiment has softened across most property sectors in the region, according to CBRE’s 2Q2025 report on the leasing market. The quarterly report was conducted between May and June.
In the office segment, leasing sentiment cooled due to the uncertain global business environment, with more occupiers seeing a decline in tenant enquiries. Survey results showed that 24% of respondents saw a fall in rents in 2Q2025, up from just 16% just three months prior. Similarly, just 26% of respondents saw an increase in office rents, compared to 38% in 1Q2024 before the Trump administration’s tariff announcements in April.
The retail sector received a similar response due to economic volatility surrounding the rebalancing of global trade policy. Sentiment in India and Korea remained relatively upbeat, according to the report. However, both markets also saw weakening occupier interest from the decline in site inspections.
Caution from retailers and landlords was also reflective of weaker rental expectations. Most regional retail markets saw sluggish rent increases and more balanced incentives, with the sole exception of Japan, which outperformed the regional average. CBRE expects rents to continue to grow in the country.
In the industrial and logistics sector, Greater China accounted for the bulk of the region’s slowdown, with tenant enquiries and inspections in the space seeing a significant decrease this quarter. CBRE attributes this to the cautious attitude occupiers have adopted amid trade disruptions.
Greater China also saw the lowest rental growth expectations as incentives continued to rise in the market. The occupiers’ appetite for expansion has also been diminished, with many seeking to consolidate their assets during this period of uncertainty.
CBRE’s Asia Pacific (APAC) market survey was conducted from May 20 to June 4. It was based on the 517 responses received from CBRE’s leasing market professionals across the APAC region.
