Retail space in Thailand seeing recovery, CBRE reports
Overall retail space estimated to reach around 8.3 million square metres in 2025
Parima Haritavorn, deputy director of retail services at real-estate consultancy CBRE Thailand, says overall retail space in Thailand is estimated to reach around 8.3 million square metres in 2025. Rental rates are expected to increase by around 5% in certain areas, indicating a steady market recovery.
Retail rental rates vary by location, with higher rates in prime areas and depending on tenant demand. Rental prices generally range from 4,000 to 8,000 baht per square metre, particularly in central business districts (CBDs).
Top 3 Retail Rental Locations in Thailand
The most sought-after and high-priced retail rental areas include:
Ratchaprasong district, which has consistently experienced intense competition.
Sukhumvit area, a prime location for commercial and retail businesses.
Outer city zones, such as Ladprao, Bangna, and around Iconsiam, which continue to attract strong demand.
Surge in Investment Interest from Food & Beverage Brands in Thailand
The retail expansion trend in Thailand is being driven by the food and beverage (F&B) sector, with a significant increase in new lease agreements. Many foreign F&B brands are entering the Thai market for the first time, seeking to establish a presence.
In response to growing consumer demand, shopping malls are expanding their F&B zones, allocating more space for restaurants and cafés.
Rental rates vary based on business type, location, and space size, with limited space commanding higher rents. For instance, fitness centres and supermarkets, which require larger rental areas, have different pricing structures than typical tenants.
As of the fourth quarter of 2024, Thailand’s overall retail occupancy rate stood at about 94.8%, reflecting a 1.3% increase compared with the same period in the previous year.
