What's Happening?
According to Cushman & Wakefield's Waypoint: Global Industrial Dynamics 2026 report, logistics and industrial rents are projected to continue rising in over half of global markets. This trend is driven by companies redesigning supply chains to manage
disruptions, higher costs, and geopolitical risks. The report analyzed 135 logistics and industrial markets, noting that global logistics rents have increased by 36% since 2020. In 2025, 61% of tracked markets recorded positive rental growth. The Asia Pacific region showed mixed rental trends, with strong growth in the Philippines, Australia, Japan, and Singapore, while mainland China experienced rent declines due to high vacancy rates.
Why It's Important?
The rising logistics rents reflect the ongoing challenges in global supply chains, impacting businesses' operational costs and strategic decisions. As companies prioritize resilience and cost management, real estate strategies become crucial. The increase in rents could lead to higher costs for businesses, affecting pricing and competitiveness. The report highlights the importance of location and operating costs, including labor and electricity, in site selection. The evolving market conditions, influenced by geopolitical risks and energy shocks, underscore the need for businesses to adapt to changing economic landscapes.
What's Next?
As supply chain pressures persist, companies may continue to adjust their real estate strategies to enhance resilience and manage costs. The report suggests that tenant-favorable market conditions may tighten by 2029, with a shift towards landlord-favorable markets. E-commerce, retail distribution, and manufacturing are expected to drive demand, while new demand emerges from sectors like energy and high tech. Businesses will need to navigate these dynamics, balancing cost management with strategic location decisions to maintain competitiveness in a challenging global environment.
