Knight Frank Thailand Reveals Logistics Property Market 2017

Container ship in export and import business and logistics. Shipping cargo to harbor by crane. Water transport International. Aerial view


  • The total warehouse supply was 4,708,447 square metres, meanwhile the new supply was 94,408 square metres.
  • Suvarnabhumi-Bangpakong saw the highest occupancy rate at 87.73 percent.
  • The average rents stood at 150.03 baht per square metre per month.
  • Government is speeding up infrastructure development projects in EEC area.

According to Knight Frank Thailand Research, The infrastructure development plan in the Eastern Economic Corridor (EEC) could potentially contribute to growth in warehouse demand in Chonburi, Rayong and Chachoengsao. Over the next 18 months, developers have the capacity to provide warehouse space of up to 250,000 square metres. However, developers will continue monitoring the level of demand. So, only 100,000 to 150,000 square metres of new warehouse supply will enter the market in the future. The rental price is forecasted to remain stable at around 150 to 155 baht per square metre per month due to the excess supply that has been added since 2014.

Economic Overview

Thailand’s GDP rose 4.3 percent in 2017. In November, due to the expansion of agriculture industry, the trade volume of exports and imports climbed to a 7 year high at 107.8 and 106.5 points, respectively, upholding the country’s record of maintaining a positive trade balance, which it has continuously held since 2014.

Figure 1


Export-Import volume indices, Q1 2008 – Q4 2017

Source : Bank of Thailand

In December, the number of containers that passed through Laemchabang Port grew by 7.25 percent, reaching an all-time record of 3,982,438 TEUs.

Figure 2

Number of containers passing through Laemchabang port, as of 2017

Source : Ministry of Commerce

Remark : TEU – Twenty – foot equivalent unit container

Figure 3

Supply of Warehouse Market, as of h2 2017

Source: Knight Frank Thailand Research

In H2 2017, the total new warehouse supply continued to be low at 94,408 square metres, or just approximately 2 per cent, bringing the total supply to 4,708,447 square metres.

Figure 4

Distribution of warehouse space by province, as of h2 2017

Source: Knight Frank Thailand Research

Distribution of Supply

Samutprakarn province currently houses the majority of Thailand’s warehousing supply, with a total area of 1,528,960 square metres or 32.47 percent of the entire market. Its location just outside of Bangkok allows convenient access to several industrial estates.

Meanwhile, the second largest supply of warehousing is in Chonburi with a 21.70% share of the total market, along with another 12.40% in Ayutthaya.


During 2017 the total occupied space in the warehouse market increased by 74,783 square metres to 3,952,699 square metres of leased space.

The Suvarnabhumi-Bangpakong area saw the highest occupancy rate at 87.73 per cent, which increased by 0.17 per cent H-o-H, or increased by 1.14 per cent Y-o-Y. The Pathumthani-Ayutthaya area commands an occupancy rate of 87.01 per cent. Meanwhile, the Eastern Seaboard area still experienced the lowest occupancy rate of 69.69 per cent.

The average net absorption of the warehouse market measures the change in occupied space; it marks a useful measure of demand. Since 2011 the average market absorption has been 170,303 square metres per year.

However, in 2017, absorption actually dropped to 74,783 square metres, whilst the occupancy rate remained mostly unchanged at 83.95 per cent, as the amount of new supply entering the market fell to meet the new levels of demand.

Figure 5

Occupied space and occupancy rate, h1 2014- h2 2017

Source : Knight Frank Thailand Research

Figure 6

Occupied space and occupancy rate, h1 2014 – h2 2017

Source : Knight Frank Thailand Research

Rental Rate

The average rental price of warehouse space stood at 150.03 baht per square metre per month.

The area that has the highest rental rate was Suvarnabhumi and Bangpakong at 156.41 baht per square metre per month, while the lowest rental rate was Pathumthani and Ayutthaya at 146.29 baht per square metre per month.

Figure 7

Rental Rates by Key Logistics Locations, H1 2014 – H2 2017Source : Knight Frank Thailand Research

Figure 8

Asking Rents by Key Logistics Locations, as of H2 2017

Source : Knight Frank Thailand Research