First quarter absorption slows from the prior years as activities focus on existing inventory, while Eastern Economic Corridor maintain stronger performance

• Net absorption was recorded at 64,900 sq.m. in Q1 2026, lower than the level recorded in the same period of 2025. Without new built-to-suit project completion during the quarter, new leases were limited to the existing stock.
• The Eastern Economic Corridor continued to attract demand, with lower vacancy rates observed in projects located in Chachoengsao and Chon Buri provinces.

Modest supply additions are recorded in Eastern Economic Corridor

• Total prime-grade warehouse supply reached 6.26 million sq.m. in Q1 2026. Two ready-built warehouse completions in Chon Buri and Rayong province added 40,800 sq.m. to the market: Alpha ESIE 1 and ESR Laem Chabang.
• With limited supply completion observed during the quarter, the market vacancy rate edged down by 46 bps to 11.3% in Q1 2026.

Minimal rental and capital value growth keeps market yield steady

• Average gross rent for prime-grade warehouses maintained at THB 159 p.sq.m. p.m. in Q1 2026, up 0.2% q-o-q.
• Most projects kept the rental rates during the quarter. Capital values for prime logistics properties recorded a slight increase in parallel with rental growth, to THB 31,657 p.sq.m. Market yields remained at 6.05%.

Outlook: Supply is expected to slow in 2026 amid persistent headwinds

• Economic headwinds are anticipated to temper supply growth, with 388,000 sq.m. of new completions anticipated in 2026. This volume represents a 5.6% y-o-y decline and is below the 400,000-sq.m. threshold seen since 2023.
• With demand expected to moderate, the overall vacancy rate is forecast to reach 13.2%. This market sentiment should keep average market rents largely flat or marginally decline.