Thailand prime logistics supply growth to decelerate in 2026

Supply is expected to increase by around 5.5% this year.

Thailand’s warehouse market is entering a period of more moderate growth, with supply expected to increase by around 5.5% in 2026, down from 7.1% in 2025, according to a report from JLL. 

The report attributes the slowdown to more cautious developer sentiment amid challenging economic fundamentals, including subdued GDP growth and softer trade volume projections, which are also expected to temper future demand for logistics space.

Despite this, the market remained active in 2025. Net absorption in the fourth quarter reached 124,000 sqm, driven by over 77,000 sqm of completed built-to-suit projects and pre-leasing of new ready-built facilities. The Eastern Vicinity led built-to-suit activity, accounting for nearly two-thirds of demand, while the Laem Chabang area in the Eastern Economic Corridor recorded absorption exceeding 25,000 sqm.

New supply in 2025 totalled over 193,000 sqm across seven projects said JLL, with the Eastern Vicinity contributing 77% of completions. This increase pushed market-wide vacancy up 80 basis points to 11.8%, although prime warehouse rents remained largely stable at THB 158.7 per sqm per month, reflecting competitive market conditions.

Investment activity also remained notable. JLL reported that Prospect REIT acquired two buildings totalling 50,000 sqm from Prospect Development for THB 970 million on long-term leases of 28 and 29 years, highlighting continued confidence in core logistics assets.

Looking ahead, JLL expects that slower supply growth combined with the economic backdrop may result in net absorption moderating from 2025 levels, signaling a more balanced but subdued warehouse market in Thailand for 2026.