The Bangkok industrial market showed mixed signals in Q1 2024. Ready-built factory (RBF) vacancy rates improved slightly, while warehouse vacancy rates edged up. This suggests a potential rise in demand for manufacturing space, but continued softness in the warehouse sector. New development is underway for both factories and warehouses, which could put downward pressure on vacancy rates in the future.
The SILP sector emerged as a bright spot with synchronized growth in both supply and occupied space in Q1 2024 (according to C&W). This trend of strong demand keeping pace with new developments has led to a significant increase in land prices within specific SILP markets in recent years.
A recent market report by C&W Thailand paints an interesting picture of the Thai industrial property scene. The report highlights two key trends: a rise in vacant Ready Built Factories (RBFs) and a surge in occupied space within Serviced Industrial Land (SILP). This trend suggests a potential shift in investor preference towards ownership over leasing.
However, the Investors are still keen on RBFs, but there's a caveat: existing options don't fully address specific requirements like space or technical specifications. To address this, C&W is guiding clients toward the build-to-suit option.
In the past year (2023), We achieved significant milestones in Thailand's industrial property sector. We facilitated major Built-to-Suit (BTS) projects for leading companies across various industries. These projects included:
- Semiconductors: Partnering with an American company (AEI) to establish a BTS facility catering to the growing demand for semiconductors in the region.
- Auto parts: Supporting an Italian auto parts manufacturer in setting up a BTS facility to streamline their operations and cater to the thriving automotive industry in Thailand.
we also played a key role in assisting existing companies in Thailand with their expansion plans.
Our services included:
Factory and Warehouse Leasing: Aiding companies seeking space to accommodate their business growth. By understanding their specific needs and available options, we helped them secure suitable lease agreements for their requirements.
Land Acquisition: We assisted them in identifying strategic locations with good infrastructure and securing ownership.
Land Long Lease: Guiding clients through the process of securing long-term leases for suitable land plots.
Our comprehensive services cater to both foreign and domestic companies looking to establish or expand their presence in Thailand's flourishing industrial landscape. By offering BTS solutions, warehouse leasing assistance, and land acquisition expertise, we empower businesses to achieve their growth objectives in this dynamic market.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit www.cushmanwakefield.com.
