Key facts
- The vacancy rate for high-standard warehouses in the Greater Bay Area reached a record high in 2025.
- New supply of warehouses has far outstripped leasing demand from cross-border e-commerce.
- The average vacancy rate for non-bonded high-standard warehouses climbed 6.6 percentage points from a year earlier.
- The logistics property market is shifting into a tenant-led correction.
The average vacancy rate for non-bonded high-standard warehouses in the Greater Bay Area climbed 6.6 percentage points from a year earlier, reaching a record high in 2025. This surge in vacancies is attributed to a substantial increase in new warehouse supply that has far outpaced leasing demand, particularly from cross-border e-commerce operators. The situation indicates a significant shift in the region's logistics property market, moving from a period of rapid expansion to a tenant-led correction. This correction is influenced by broader factors including geopolitical tensions and evolving retailer strategies.