Singapore’s Logistics Sector Remains Resilient and Attractive Amid Global Trade Uncertainty: CBRE Survey

Singapore, August 7, 2025 -- Despite ongoing global trade uncertainty, 76% of logistics occupiers in the region plan to expand their real estate footprint over the next three to five years, according to CBRE’s 2025 Asia Pacific Logistics Occupier Survey. Within Southeast Asia, Singapore emerged as one of the key markets of interest, ranking second just behind Vietnam. This signals strong occupier confidence in the city-state’s long-term strategic value.

The report, which gathered insights from over 380 companies across Asia Pacific between March and April 2025, indicates that cost is not the sole consideration for occupiers. In Singapore’s case, qualities such as its reliable operating environment, strong regional connectivity, and strategic positioning continue to resonate with logistics tenants navigating a complex global environment.

“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, Singapore, CBRE. “We’re seeing a three-pronged approach consisting of government-led infrastructure investments, expansion by top-tier logistics players, and robust capital flows into modern logistics assets. This synergy is reinforcing Singapore’s role in the global supply chain.”

CBRE Research notes that this confidence is reflected in the market’s activity. Infrastructure enhancements such as the PSA Supply Chain Hub @ Tuas and Tuas Port are strengthening Singapore’s logistics capabilities, while recent facility launches by global players like DHL Supply Chain and DP World demonstrate continued occupier commitment. Investor interest remains strong, with capital flowing into modern logistics assets such as Sunview Hub and DSV Pearl, supporting the sector’s long-term growth.

The report also highlights Singapore’s continued status as a major logistics hub, particularly for hi-tech manufacturing and life sciences sectors. An influx of new supply in 2025 is expected to create opportunities for occupiers to renegotiate leases and meet pent-up demand.

Across Asia Pacific, logistics occupiers are looking beyond short-term market volatility and planning long-term investments. While 69% of respondents expect business performance to improve in the next two years (down from 81% in 2023), the overall sentiment reflects a more cautious near-term outlook amid ongoing trade policy uncertainty.
Cost efficiency and strategic location selection have become top priorities. The survey found that 78% of respondents identified rent reduction as a key driver for relocation, while many are also seeking proximity to transportation hubs, customer bases, and supply chains to enhance operational efficiency.

“CBRE’s analysis shows that real estate accounts for just 3 to 6% of the total logistics cost structure,” said Michael Bowens, Head of Industrial & Logistics Leasing, Asia Pacific, CBRE. “We advise occupiers to focus on total occupancy costs, not just face rent, when planning their real estate strategies. This comprehensive approach includes factors like transportation, labour availability, last-mile efficiency, and inventory management.”

These regional trends are reflected in Singapore, where occupiers continue to prioritise strategic positioning and operational efficiency. The city-state’s reputation as a strategically located, neutral, and stable logistics hub remains a key differentiator amid shifting trade dynamics.

To read the full report, click here.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.com.

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