• Leasing activity is led by F&B, with lifestyle and experiential concepts remaining prominent drivers, supported by tourism flows and steady domestic consumption across most markets.

• Rents are showing modest growth overall, driven by continued tenant interest in prime assets, though Greater China’s ongoing declines, while narrowing, continue to weigh on the regional average.

• Investment activity held steady in Q1 2026, with Australian institutional and private capital leading regional volumes, and Singapore’s private buyer momentum gaining further traction.

Asia Pacific retail leasing began the year on a resilient note. F&B, fashion, and experiential concepts drove demand in high-footfall locations, supported by tourism recovery and steady domestic consumption. Sentiment softened across parts of the region, however, as inflation and geopolitical uncertainty weighed on confidence. Retailers in China remained selective, leasing activity was strong in India and steady elsewhere.

Landlord approaches reflected local realities. In China, incentives and flexibility were used to support occupancy amid softer demand, and rents continued to decline, though less sharply than in previous quarters. In Tokyo, India, and Australia, stronger leasing momentum allowed for firmer rent positioning, and moderate gains emerged, supported by healthy tenant demand and limited new supply. Elsewhere, outcomes varied, shaped by asset repositioning, evolving tenant priorities, and affordability constraints.

Completions were relatively limited, and net absorption was similarly muted, meaning little net change in overall availability across the region.

Investment activity held steady in Q1, with volumes reaching USD 6.2 billion — flat year-on-year. Australian unlisted funds and private capital led regional transactions, with Charter Hall particularly active through portfolio acquisitions from LaSalle IM and Vicinity Centres. Singapore maintained momentum, with private buyers stepping in — exemplified by Altallo Group’s multi-asset strata acquisition from Mercatus. Japanese volumes softened as investors focused on smaller deals and asset exchanges, though Osaka is drawing increasing interest.

Outlook

Leasing activity is likely to remain supported near-term by F&B, fashion, and value-oriented concepts — reflecting continued consumer interest in experience and affordability. That said, inflationary pressures could weigh further on sentiment and tourism recovery, and retailers may adopt a more cautious stance on expansion. Landlords are expected to maintain disciplined, tenant-aware strategies — leaving the regional rent outlook broadly optimistic, though mindful of these near-term challenges.