TÜRKİYE MARKETBEAT Q3 2026

Leasing activity strengthens as regional demand patterns shift

New leasing activity totaled 48,780 sq m in Q3 2026, up 130% year-over-year. New leases accounted for 72% of total transaction volume by area and 51% by number. By area, 58% of new leasing activity took place on the Asian Side, 39% in the Central Business District (CBD), and 3% on the European Side outside the CBD. Declining vacancy rates and rising rental levels in the CBD supported a shift in leasing demand toward the Asian Side. The Asian Side captured the largest share of new leasing volume, while prime office rent in the submarket increased to US$38.5/sq m/month.

Retail sentiment improves despite cautious consumer spending

In the third quarter of 2026, purchasing power remained under pressure, while consumer expectations showed a modest improvement. In September, the Consumer Confidence Index decreased by 0.1% month-over-month to 83.9, while the Economic Confidence Index rose to 101.3, remaining above the 100-point threshold. The Retail Trade Confidence Index increased by 1.1% to 111.3, while a 3.5% rise in sales expectations for the next three months indicated cautious optimism in the sector. However, the limited translation of improving expectations into consumer spending, coupled with ongoing operating cost pressures, continues to drive a selective approach to expansion among retailers.

Production slowdown continues as trade grows in value terms

Based on available data, Grade A logistics warehouse leasing volume declined by 67% year-over-year to 26,000 sq m in the third quarter. Four transactions were recorded during the period, with the largest lease of 12,000 sq m accounting for approximately 46% of total leasing volume. The limited number of transactions increases the sensitivity of quarterly performance to individual deals. Despite the decline in leasing activity, Istanbul's prime logistics rent remained unchanged year-over-year at US$11/sq m/month. While high vacancy rates in lower-quality warehouses are putting downward pressure on rents, the limited availability of modern, high-quality Grade A facilities continues to support prime rental levels.