Real estate firm Knight Frank has revealed the total supply of the rental warehouse market was 3,135,174 sqm, increasing from last year by 19.5 percent as 511,568 sqm of new supply entered the market from mid-2013.
According to firm’s research, 284,757 sqm of warehouse space was completed during H1 2014. Most of the warehousing space is located in Samut Prakarn, which encompasses 1,158,287 sqm, accounting for 37 percent of the total space. This location has the key benefits of proximity to the Suvarnabhumi Airport, Bangkok, and major industrial estates. Chonburi is also a popular location for manufacturers and third-party logistics providers. The supply there is equivalent to 817.494 sqm, or 26 percent of the total space.
The total occupied space was 2,525,478 sqm, increasing from the previous year by 11.4 percent, while the occupancy rate dropped to 80.6 percent because of the new developments,
Knight Frank Thailand’s research showed a very slight decrease in rental rates in Suvarnabhumi-Bangpakong and Pathumthani-Ayutthaya locations as competition intensifies amidst an influx of new developers. However, the overall trend is still positive, as take-up rates remain healthy.
Marcus Burtenshaw, Executive Director, Head of Commercial Agency, Knight Frank Chartered (Thailand), predicted that: “…warehousing demand is expected to be healthy during the rest of 2014. However, with over 500,000 sqm of future supply scheduled to be completed in the coming year, we believe the warehouse rents will experience only slight growth as competition intensifies, especially in the strategic distribution locations between the Laem Chabang Port and the main manufacturing clusters.”
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
