As tariff policies change and potential trade wars arise, manufacturing industries dependent on US exports encounter increased risks; However, continued diversification of supply chains is positively impacting industrial centers and commercial real estate in India and Southeast Asia, as stated in a report by global real estate services company Cushman & Wakefield.
The report stated that the manufacturers will persist in assessing their supply chain structure and look for additional chances for improvement.
As per the report by Cushman & Wakefield titled Trump 2.0: The First 100 Days - Implications for the APAC Economy & Property Markets, the demand from both occupiers and investors for commercial real estate remains strong, with ongoing office space absorption in major markets like India, Indonesia, and the Philippines.
According to the report, the net absorption of office space throughout APAC in the first quarter (1Q) of 2025 is around 26 million square feet, reflecting a 20 percent increase compared to the previous year.
The report states that due to the trade tariffs implemented on China by the US in the initial Trump administration, along with China's +1 manufacturing strategies, industrial production has grown quickly throughout the Asia Pacific region.
"The primary beneficiaries have been India and markets in South East Asia," the report added.
Acknowledging the effects, the report noted that substantial policy changes in the initial 100 days of President Donald Trump's second term, particularly regarding U.S. trade, tariffs, and deregulation, have caused considerable volatility in global markets.
However, in spite of these increasing global economic uncertainties, the economy and property markets in Asia Pacific are showing resilience, supported by domestic factors and robust market fundamentals, the report noted.