Commercial real estate investment volume increased by 4.1% q-o-q to US$28.6 billion in Q2 2019 but market sentiment continued to be negatively impacted by a range of factors including the U.S-China trade conflict; sociopolitical unrest in several Asian markets; and mounting global economic uncertainty. Cross-border investment remained active, with Asian capital continuing to dominate.
Office net absorption rebounded by 15% q-o-q to 14.1 million sq. ft. NFA but this was primarily due to pre-leasing in new supply. Aside from India, demand in most markets was subdued. Tech firms led new set-up and expansion but activity from flexible space providers slowed. Rents increased by 0.2% q-o-q.
Retail leasing demand was limited and largely confined to retailers with relatively smaller sized requirements. Rents edged down slightly by 0.1% q-o-q.
Logistics demand slowed as occupiers, particularly those in trade-related sectors, turned more cautious. Leasing activity was primarily led by domestic consumption-driven occupiers. Rents rose by 0.4% q-o-q.