Thailand industrial rents set to rise as vacancies fall and supply stays tight
Cushman & Wakefield Thailand reports that industrial property rents in Thailand could rise as factory and warehouse vacancies decline amid limited new supply and sustained demand from manufacturers and logistics operators. No new ready-built factories or warehouses were completed in the first nine m
Industrial property rents in Thailand could rise as factory and warehouse vacancies decline amid limited new supply and sustained demand from manufacturers and logistics operators, according to property consultancy Cushman & Wakefield Thailand.
Phongphan Phloiphet, director of logistics and industrial at the consultancy, said occupancy levels continued to improve across both ready-built factories and warehouses in the third quarter of 2026, creating conditions that could support higher rents. "Although rents remained unchanged in the third quarter, the fundamentals of Thailand's industrial property market remain strong," he said. "Occupancy rates have continued to improve, while limited new supply is putting upward pressure on rental rates."
The average monthly asking rent for ready-built factories remained at 196 baht per square metre in the third quarter, while ready-built warehouses commanded an average of 160 baht per sq m, unchanged from the previous quarter. The factory market recorded a vacancy rate of 9.95 per cent, down from 10.5 per cent in the second quarter, while warehouse vacancies declined to 13.6 per cent from 14.7 per cent, reflecting continued absorption.
No new ready-built factories or warehouses were completed during the first nine months of 2026, leaving factory supply unchanged at 3.42 million sq m and warehouse supply at 6.05 million sq m. "Demand was supported by sustained manufacturing activity, supply chain diversification and growing requirements from logistics operators, while developers remained cautious about introducing new projects," Mr Phongphan said.
The factory market is facing constraints on new development, while new warehouse supply is expected to increase at a pace consistent with market demand. Vacancy rates are expected to remain low as developers exercise caution over new launches, he said. Demand will continue to benefit from manufacturing relocation across Southeast Asia, ongoing foreign direct investment, manufacturers increasing inventory to manage supply chain uncertainty, and the expansion of e-commerce fulfilment operations and distribution networks nationwide, noted the consultancy.
Serviced industrial plots recorded an average asking price of 8.65 million baht per rai in the third quarter, up from 8.40 million baht the previous quarter, while the vacancy rate declined to 5.49 per cent from 5.73 per cent. A further 20,286 rai of serviced industrial land is under development, while total available inventory remains at 222,388 rai. By location, the average asking price was highest in Bangkok at 14 million baht per rai, followed by Samut Prakan at 13.5 million baht and Chon Buri at 9.75 million baht. Rayong recorded an average asking price of 8.5 million baht per rai, while prices averaged 8.6 million baht in Chachoengsao and 6 million baht in Ayutthaya.
The combination of improving occupancy, stable rents and limited factory development points to a gradual tightening, although the pace of any rental increases will depend on demand growth and the amount of new warehouse space entering the market.
