The vacancy rate for high-standard warehouses in the Greater Bay Area rose to a record high in 2025 as a surge in new supply outstripped leasing demand from cross-border e-commerce operators, reports Caixin.

The average vacancy rate for non-bonded high-standard warehouses in the region climbed 6.6 percentage points from a year earlier to 15.2 percent at the end of 2025, according to a report by real estate services firm Savills. The logistics property rent index for the area fell 12.4 percent over the same period, ending a multiyear upward trend.

New supply reached 4.8 million square metres in 2025, lifting total stock to 25.4 million square metres, representing a 23.1 percent increase. However, full-year net absorption reached only 2.7 million square metres, which was less than 60 percent of the newly added space.