APAC office leasing sentiment improves as enquiries rise

Incentives have also remained largely stable. 

Office market sentiment across Asia Pacific continued to improve in the fourth quarter of 2025, supported by higher tenant enquiries, stabilising incentives and firmer leasing activity, according to CBRE’s latest Asia Pacific Leasing Market Sentiment Index.

CBRE said office leasing sentiment strengthened during Q4, driving an uptick in both tenant enquiries and site inspections across the region. India and Japan emerged as the most upbeat markets, while Australia recorded a notable improvement in leasing activity after a subdued period earlier in the year.

Rents across most APAC markets either increased or remained stable during the quarter, with mainland China the key exception as downward pressure persisted. Incentives largely stabilised across the region, although Japan saw further declines due to extremely limited availability.

Tenant activity improves

The frequency of tenant enquiries increased month-on-month, with 37% of respondents in December reporting frequent enquiries, up from 29% in September. At the same time, the proportion of respondents citing infrequent enquiries fell to 9%, down sharply from 18%.

Site inspections also showed signs of stabilisation. While the share of frequent inspections eased slightly to 34% in December from 37% in September, CBRE noted that overall activity remained resilient as occupiers moved forward with decision-making.

Stronger expansionary demand was evident in Australia, South Korea and Singapore, while enquiries related to lease renewals and relocations declined. CBRE attributed this shift to improved global trade policy clarity, which has given occupiers greater confidence to commit to leasing decisions.

Rents hold firm, incentives steady

CBRE’s survey showed rents continued to trend positively. In December, 40% of respondents reported rental increases, while half indicated rents were unchanged. Only 11% reported rental declines, down from 13% three months earlier.

Incentives remained largely stable, with 74% of respondents reporting no change in December. The share of markets experiencing rising incentives fell to 11%, while 15% saw incentives decline, reflecting tightening conditions in select markets.

Negotiating power evens out

Lease negotiations became more balanced toward the end of the year. In December, 45% of respondents said negotiations were landlord-favoured, unchanged from September, while tenant-favoured conditions eased to 45% from 48%. Neutral conditions edged up to 10%.

CBRE said the data points to a gradual normalisation of leasing conditions across APAC office markets, with improving demand fundamentals and constrained supply in several key cities supporting sentiment heading into 2026.