Commercial real estate investment volume in Asia increased by 4.1 percent quarter-over-quarter to $28.6 billion in the second quarter 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, reported CBRE.
Cross-border investment remained active, with Asian capital continuing to dominate.
Office net absorption rebounded by 15 percent quarter-over-quarter to 14.1 million square feet 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 percent quarter-over-quarter.
And logistics demand slowed as occupiers, particularly those in trade-related sectors, turned more cautious. Leasing activity was primarily led by domestic consumption-driven
