What are the two most popular APAC markets for retailer expansion?

These markets recorded the highest diversity in retail leasing demand.

Retail leasing sentiment has been solid over the past 12 months according to CBRE’s Asia Pacific Leasing Sentiment Survey, with over 75% of surveyed brokers reporting leasing enquiries from retailers seeking new setups, expansion and upgrading, indicating appetite for more space.

This is partially due to retailers rebuilding store networks after reducing them during the pandemic.

Here’s more from CBRE:

Store opening strategies include capitalising on market weakness to expand/relocate to core locations; committing to longer leases for pop-up stores; and focusing on smaller but more targeted stores to host specific product lines.

Despite the positive overall picture, there are some geographical nuances. Leasing sentiment in Greater China has weakened due to sluggish economic performance while that in Korea has fallen from a high base. Japan is seeing stronger sentiment on the back of record-breaking tourist spending.

In addition to the strength of leasing sentiment, CBRE has assessed the diversity of expansionary demand across ten major retail categories. The broader spectrum of demand, the more collaboration between different brands and trades.

Japan scored the highest in diversity of leasing demand. Apart from F&B, this market is witnessing solid demand from fashion and apparel retailers, especially domestic brands.

In India, activity is being driven by new overseas entrants and up-and-coming local brands, with established mainstream brands less aggressive.

Many markets are seeing the emergence of new retail subcategories or brands. For example, the entertainment segment is being driven by indoor playgrounds, while traditional occupiers like cinemas are quiet. In the sports segment, demand from smaller specialist brands and outdoor-related retailers is outpacing established groups.