Bangkok prime retail rents inch up 0.6% in Q2

Meanwhile, vacancy increased to 4.7% during the quarter.

Bangkok's prime retail market saw consumer sentiment weaken in the second quarter of 2026 as elevated household debt and rising energy costs weighed on spending, although government stimulus measures provided some support, according to JLL.

The market nevertheless maintained relatively stable demand, with international leasing remaining robust. JLL said Asian food and beverage chains continued to expand, while household goods retailers also recorded growth. However, average new lease sizes fell significantly as occupiers opted for more selective expansion and operationally efficient store formats.

Prime retail stock was unchanged at 3.86 million sq m in Q2, with no new supply added. Vacancy edged up 14 basis points quarter on quarter to 4.7%, broadly in line with the same period a year earlier. More than half of prime centres recorded tenant departures, although JLL said there was no clear pattern to the exits.

JLL attributed the relative stability to gradual absorption at centres opened in previous years, a lack of new competing supply in the first half, successful reopenings of renovated malls and leasing momentum carried over from late 2025.

Prime retail gross rents rose 1.0% quarter on quarter. Excluding adjustments related to the reclassification of prime supply, growth was a more modest 0.6%, JLL said. Rising energy costs, weak consumer sentiment and subdued tourism continued to constrain rental growth, while subdued transaction volumes kept yields broadly stable.

Looking ahead, JLL expects a cautious market through 2026. Tourist-focused malls could face continued footfall pressure as geopolitical tensions delay the recovery of high-spending regional tourism, while inflation and energy costs put further pressure on operating margins. Major developers have responded by delaying projects under construction by several quarters and pushing proposed pipeline developments back by several years, according to JLL.