REDPAPER predicts 1.7 mil sq.m. GFA growth of demands for modern warehouses, thriving as the E-Commerce surge in Thailand by 2025

Real Estate News Monday June 20, 2022 08:54 —PRESS RELEASE LOCAL

REDPAPER, an insight report featuring data and trends in the real estate industry in Thailand by Frasers Property (Thailand) Public Company Limited, in collaboration with property consultant JLL, published the second edition that illustrate Thailand's logistics properties evolvement from 2018 to present. REDPAPER confirms the rising trend of the modern warehouses in the country led by the accelerated growth in e-commerce despite several key events disrupt the supply chain globally - the COVID-19 pandemic and the US-China trade war that introduced the tariffs and restrictions at the global level.

Throughout the changes and disruptions, the demand for warehouses in Thailand has increased by 42.1%, based on the total nationwide prime logistics stock in 2021 , according to JLL's database, as developers rush to accommodate the increasing demands from E-Commerce and growing manufacturing sectors such as EV, automotive, electrical appliances, foods and beverages, etc. Thailand is one of the leading investment hotspots given its strategic location as a gateway to all regions in Asia, comprehensive business resources network, skilled and highly-qualified workforce, well-developed transportation system, road connectivity and communication and digital infrastructure as well as an international-quality lifestyle. These make Thailand an attractive location for investors and multinational corporations, including modern logistics players.

Seeking industry experts' opinions, REDPAPER approached Frasers Property Industrial (Thailand) Company Limited and JLL Thailand. Mr. Sopon Racharaksa, Chief Executive Officer at Frasers Property Industrial (Thailand) Company Limited, commented: "The pandemic-fueled e-Commerce boom and its continued growth drive seismic shifts in the warehousing market. The logistics properties are in high demands to cater the e-Commerce surge. A growing number of enterprises are also showing higher reliance on outsourcing various logistics functions including transportation, warehousing, and distribution. At the same time, tailor-made Third-Party Logistics (3PL) services serving the needs of industry-specific enterprises are increasing. Both drive growth in the 3PL market in a major way, thus shifting demands for warehouses."

The expansion of the e-Commerce and 3PL sectors have driven Samut Prakan to face drastic growth as it is situated in the proximity of Bangkok, Suvarnabhumi airport, Bangkok port, Laem Chabang port and all major manufacturing hubs across EEC provinces, providing convenient access for last-mile delivery and exporting & importing activities.

The Eastern Economic Corridor (EEC) development plan covers Rayong, Chonburi, and Chachoengsao where leading manufacturers and logistics players have chosen to operate their businesses to maximize logistics performance through deep seaports. These three strategic locations are highly recognized by global investors as they are known for attractive industrial clusters, incentive packages and infrastructure investments.

Despite challenges posed by the incident, Ayutthaya has continued and transformed itself to be a strategic location for leading manufacturers, logistics operators and distribution hubs for the F&B, electronics and FMCG industries as industrial property developers and industrial estates have since implemented preventive measures.
Brought about the completion of a section of the new Bang Pa-in - Nakhon Ratchasima elevated motorway, that is expected to fully open in 2023, has propelled demand for warehousing facilities as this optimal routes will enable efficiency of logistics.

Jeremy O'Sullivan, Head of Research & Consulting, JLL said: "Thailand's E-Commerce sector continues surging forward, with growth projected each year until 2025. By JLL's calculations, for every USD one billion of E-Commerce Gross Merchandise Value 120,000 sqm GFA of logistics space is required. This huge amount of demand means that a total of 1.7 million sqm GFA of prime grade warehouses and logistics facilities will be required by the end of 2025, presenting a fantastic opportunity for investors and developers."

REDPAPER is Frasers Property Thailand's new insight report on the local real estate industry. Backed by facts, trends and analysis in the residential, industrial and commercial sectors, a series of articles will be published regularly with commentaries from market leaders. For more on REDPAPER, please visit

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