Thailand to see at least 13 new prime logistics projects this year

These projects will yield 427,000sqm of leasable space.

In a recent report, JLL revealed that at least 13 projects, totaling 427,000 sqm of leasable space, are expected to be completed in Thailand’s Greater Bangkok area by end-2025. Approximately 114,000 sqm of this will be built-to-suit properties.

“The tariffs imposed by US President Donald Trump have created uncertainty regarding the benefit of the China+1 policy for Thailand. This will likely cause investors to adopt a wait-and-see approach, negatively impacting overall demand in Thailand’s logistics market,” the report said.

Here’s more from JLL:

In Q1, Thailand’s logistics market saw sustained healthy demand, with net absorption reaching 115,000 sqm. This was largely due to strong demand for ready-built projects fueled by third-party logistics service providers and the expansion of the manufacturing sector.

The Eastern Economic Corridor (EEC) submarket benefitted from its location near manufacturing hubs, resulting in strong take-up and pre-leasing activity for recently completed, ready-built projects.

Market sees vacancy rate drops despite notable supply expansion

Four project completions were recorded in Q1 2025 with a combined leasable area of 93,000 sqm, all located within the EEC submarket. These included projects from Frasers Property, Prospect Development, Alpha Industrial Solutions and SC Expedition.

Strong demand for new ready-built projects outpaced new supply, leading to a slight decrease in the market-wide vacancy rate, which dropped by 0.6% q-o-q to 10.6%.

Strong competition keeps rents stagnant as new projects offer competitive rates

The average market rent saw a slight increase to THB 159.1 per sqm, per month. New projects showed minimal to no rent premium compared to older properties in the same area, resulting in stagnant rent growth.

Capital value saw a q-o-q growth of 0.7% and was recorded at THB 31,564 per sqm, due to a slight improvement in rents. Meanwhile, the market yield remained stable at 6.05%.