APAC office leasing activity jumps 11% to nearly 10m sqm in 2025

Supply also increased by 19%.

Asia Pacific’s office markets are entering a more disciplined and strategic phase in 2026, as occupiers and investors shift from expansion at scale to precision-driven decision-making, according to new research from Colliers.

In its latest Asia Pacific Office Market Insights February 2026 report, Colliers said that while demand rebounded strongly throughout 2025, the coming year will be defined less by how much space organisations lease and more by where, why and how they secure it. The firm describes this as a transition from a volume-led cycle to one centred on performance, resilience and long-term value.

Total leasing activity across 11 key Asia Pacific office markets reached 9.8 million square metres in 2025, marking an 11% year-on-year increase. Colliers attributed the growth to improving business confidence and renewed expansion in major economies including India, China and Japan. Together, these three markets accounted for around 90% of total regional leasing activity during the year, underlining their continued role as demand anchors.

Supply also rose, increasing 19% year-on-year, broadly tracking demand growth. However, Colliers noted that supply remains uneven across markets and submarkets. As vacancy tightens in prime locations, competition for high-quality office space is intensifying, prompting occupiers to take a more deliberate and selective approach.

“The conversation has changed,” said Mike Davis, Managing Director of Occupier Services, Asia Pacific at Colliers. “This is no longer a volume-driven market. In 2026, advantage will go to organisations who are clear about what they need from their offices, which is performance, resilience and long-term value, and who move decisively when the right opportunity appears.”

Davis added that companies are making fewer moves, but better ones, as they recalibrate their portfolios. Rather than simply returning to the office, businesses are reassessing how workplace strategies align with operational goals, workforce expectations and long-term competitiveness.

Beyond the region’s largest economies, Colliers observed strong growth momentum in markets such as Philippines, New Zealand and Hong Kong, albeit from lower bases. This points to a broader regional re-engagement rather than a uniform recovery, with activity levels varying significantly by market and asset quality.

Investment trends are reinforcing this shift toward quality. Institutional investment into Asia Pacific office markets climbed 21% year-on-year to US$58.6 billion in 2025, reflecting renewed sector confidence. South Korea and Japan together accounted for more than half of total regional office investment volumes, while India posted the strongest annual growth in investment activity.

According to Theo Novak, Managing Director of Capital Markets & Investment Services, Asia Pacific at Colliers, capital is increasingly aligning with occupier preferences for well-located, future-ready assets. “Institutional investors are looking past short-term cyclical rebounds, and aligning with occupier demand for high-quality, well-located, future-ready buildings, underscoring the growing convergence between occupier strategy and capital deployment,” Novak said.

He added that the next phase of the office cycle will be shaped not by headlines but by execution, led by organisations and investors who view real estate as a competitive advantage rather than simply a cost line.

As 2026 unfolds, Colliers’ outlook suggests that Asia Pacific’s office markets will remain active, but increasingly polarised. With vacancy tightening in prime segments and competition intensifying for best-in-class space, success will hinge on clarity of strategy and the ability to act decisively in a more exacting and quality-driven environment.