Amid a rapidly evolving logistics landscape, Thailand’s Greater Bangkok market is poised for significant changes in warehouse rental dynamics. According to a recent report from JLL, the prime grade warehouse rental rate is expected to experience a slight decline in the near to medium future. This decline comes as over 427,000 square meters of leasable space is scheduled for completion in 2025, accompanied by an additional 378,000 square meters planned for 2026 and 2027.
The JLL report emphasizes that developers are likely to diversify their asset classes and strategies within the logistics and industrial sectors as competition heats up. The anticipated growth in manufacturing is set to drive demand for solutions that effectively capture both logistics and industrial needs.
In a development that might raise eyebrows, net absorption of prime warehouse space recorded a meager 66,100 square meters in Q2, marking the lowest figure since Q1 2024. This dip is attributed to reduced occupancy rates in the Eastern Economic Corridor (EEC), despite the completion of major built-to-suit projects in Wang Noi, Ayutthaya.
Consequently, the market vacancy rate surged by 1.0%, reaching 11.4% in Q2 2025. The increase can be traced back to negative take-up in select EEC projects, underscoring the evolving challenges within this critical area of Thailand’s logistics scene.
The completion of three significant projects in Q2 2025 added 125,500 square meters of net leasable area to the market. These include SCX Logistics Bangna Km.20 – Phase 1, ESR Asia Bowin (W1/W2), and the Big C Bang Pa-in Distribution Centre. Notably, the 89,000-square meter built-to-suit Big C facility in Ayutthaya reflects the surging demand in the Northern Vicinity among consumer goods retailers.
Amidst this backdrop, rental rates have dipped slightly to 159 THB per square meter per month, maintaining a rather static average over the past two years. This stagnation is largely due to intensified competition from several newcomers entering the market. The overall market capital value showed a marginal quarter-on-quarter decline of 0.2%, now averaging THB 31,505, as a result of rental rate compression.
What are the trends affecting warehouse rental rates in Greater Bangkok?
JLL’s report highlights an expected slight decline in prime grade warehouse rental rates, driven by the upcoming completion of a significant amount of new leasable space.
How has net absorption in the warehouse market changed?
Net absorption fell to 66,100 square meters in Q2, marking the lowest since early 2024, influenced largely by reduced occupancy in the Eastern Economic Corridor.
What impact do new projects have on the logistics market in Northern Vicinity?
The recent completion of major projects, especially the Big C Bang Pa-in Distribution Centre, indicates a growing demand from consumer goods retailers in the Northern Vicinity.
