The anticipated border reopening will bring much-needed breathing space to local logistics operators.

• The first eleven months saw both local air freight and container throughputs continue to decline, with local 3PLs bearing the brunt.
• With most operators struggling, landlords were more flexible in rental negotiations, leading to overall and modern warehouse rental declines of 1.0% and 1.5% in Q4/2022 respectively, while both overall and modern warehouse vacancy rates remained largely stable at 1.9% and 1.3% over the same quarter.
• Investment interest softened with continued interest rate hikes, though experienced investors and end users are still purchasing selectively.
• Looking ahead, the timing of the border reopening and the speed of supply chain recovery will be key to any logistics demand revival.
• With interest rate hikes likely to ease, the new norm of a high cost of capital (5%+ for commercial loans) and changing government policies will likely alter the purchaser profile for industrial assets in 2023.