Knight Frank Chartered (Thailand) Co Ltd

"Logistic, H2 2023"

The Summary Highlight

Thailand's logistics property market showed signs of a slowdown in its growth trajectory during the second half of 2023, with 3PL and e-commerce sectors scaling back to align their operations with demand outlooks. External factors such as the Red Sea conflict and other geopolitical tensions raise concerns for the global supply chain, and the magnitude of their impact on Thailand's logistics activities will likely be observed in 2024.

Total supply increased to 5.70 million sq m., 3.1% HoH and 6.3% YoY
The overall occupied space experienced a 0.7% HoH decrease to 4.81 million sq m. due to a negative net absorption of -31,800 sq m.
The overall occupancy rate witnessed a HoH drop of 3.2 percentage points to 84.4%, with the Eastern Economic Corridor (EEC) experiencing a substantial decline of 6.9 points to reach 76.4%.
In H2 2023, the average asking rent saw a slight decrease to 158 THB per sq m per month
Geopolitical tensions particularly the Red Sea conflict, and rising freight rates globally, contributing to a growth plateau in the second half of 2023.