Key facts
- High-standard warehouse vacancy rates in the Greater Bay Area reached a record in 2025.
- New supply of warehouses has significantly increased.
- Demand from cross-border e-commerce has not kept pace with new supply.
- The market is shifting towards a tenant-led correction.
- Tenants are expected to have increased leverage in negotiations.
High-standard warehouse vacancy rates in the Greater Bay Area have reached a record high in 2025. This development is primarily driven by a substantial increase in new supply entering the market, which has significantly outpaced the demand from various sectors, most notably cross-border e-commerce. The growing availability of warehouse space suggests a notable shift in market dynamics, moving towards a tenant-led correction. This means that tenants are likely to gain more bargaining power in lease negotiations, potentially leading to more favorable terms for them. The increased vacancy rates signal a period of adjustment for the logistics and real estate sectors within the Greater Bay Area as the market adapts to the new supply-demand equilibrium.