Warehouse demand remains strong in Q4 2025, with Eastern Vicinity leading built-to-suit activity and Eastern Economic Corridor recording absorption of existing stock

• Net absorption reached 124,000 sqm in Q4 2025, driven by the completion of over 77,000 sqm across three built-to-suit projects and the pre-leasing of new ready-built facilities.
• The Eastern Vicinity led built-to-suit facility absorption in Q4 2025, accounting for nearly two-thirds of demand. Meanwhile, the Laem Chabang area in the Eastern Economic Corridor recorded net absorption exceeding 25,000 sqm during the quarter.

Supply influx drives vacancy up 80 basis points, with over 193,000 sqm delivered across seven projects

• New supply totalled over 193,000 sqm in Q4 2025 across seven projects, led by Eastern Vicinity with 77% of completions, followed by Northern Vicinity at 14% and Eastern Economic Corridor contributing the remaining supply.
• Market-wide vacancy increased by 80 basis points to 11.8% in Q4 2025, driven by a recent supply influx, which added 68,000 sqm to total vacant space across the logistics market.

Average rental rates remain largely unchanged in Q4 2025, reflecting steady market conditions in the prime warehouse segment

• Average rental rates for prime warehouses remained largely stagnant in Q4 2025, declining by eight basis points to THB 158.7 per sqm per month, reflecting persistent pressure from intense competition and rapidly expanding supply.
• Prospect REIT acquired two buildings totalling 50,000 sqm from Prospect Development for THB 970 million in Q4 2025, secured on long-term leases of 28 and 29 years.

Outlook: Supply growth is likely to moderate from 2025, while demand weakens amidst challenging economic conditions

• Development pipeline is likely to decelerate, with supply growth of around 5.5% expected in 2026, a slowdown from 7.1% growth in 2025, reflecting more cautious developer sentiment across markets.
• Net absorption is expected to weaken from 2025 due to challenging economic fundamentals, with subdued GDP and trade volume projections reducing warehouse space demand.