Greater Bangkok to see 444,000sqm of new warehouse space this year

Thanks to at least 15 projects expected to be completed in 2025.

According to a recent JLL report, at least 15 projects with ready-built warehouse completions are expected in Greater Bangkok in 2025, amounting to 444,000 sqm. This is due to the rapid expansion of new players such as Alpha Industrial Solutions, SC Expedition and ESR.

“This is expected to drive the average rental rate slightly downward due to the competitive environment. Moreover, the incoming supply is expected to be in alternative locations with lower-than-market-average rental rates.”

Here’s more from JLL:

Net absorption was recorded at 107,000 sqm in Q4 2024. A large portion of the demand came from the completion of a large-scale BTS project, located in the Northern Vicinity submarket.

Additionally, smaller ready-built products in the Eastern Economic Corridor areas completed in the quarter saw strong pre-leasing volumes, resulting in a slight increase in the average vacancy rate to 11.2%.

Strong supply growth trend continues throughout 2024

Three completions were recorded in Q4 2024, resulting in a total supply increase of 129,000 sqm. One notable addition was CP Axtra’s built-to-suit warehouse and distribution centre at the Bangkok Free Trade Zone 5 project in Wang Noi, Ayutthaya.

Additionally, Alpha Industrial Solutions completed an 18,000-sqm ready-built warehouse in Laem Chabang. Frasers Property also finalised their new project, Project Infinity (Puchao), situated in Samut Prakan.

Rental rate drops amidst strong competition from new ready-built projects in alternative locations

The average was recorded at 158.0 THB/sqm/month, a 1.1% drop q-o-q. The drop is due to strong competition from new ready-built projects in 2024, most of which are located in the

Eastern Economic Corridor submarket, where rental rates are generally slightly lower.
The capital value stood at 31,300 THB/sqm, reflecting a -1.1% q-o-q and 0.8% y-o-y change. This was due to stagnant rental rates, despite a gradual compression in market yields.

Note: Thailand Industrial refers to the Greater Bangkok prime logistics market.