News release

Thailand may need another 1.7 million sqm of warehouse space by 2025

E-commerce growth drives demand

June 17, 2022

Despite several key events that have disrupted supply chains globally, e-commerce has continued to grow and drive demand for warehouse and logistics space in Thailand. The second edition of REDPAPER, an insight report featuring data and trends of the real estate industry in Thailand by Frasers Property (Thailand) Public Company Limited, in collaboration with property consultant JLL, illustrates the evolution of Thailand’s logistics real estate from 2018 to present.

Throughout the changes and disruptions, demand for warehouses in Thailand increased by 42.1%, based on the total nationwide prime logistics stock in 2021 , according to JLL’s data. This is because developers rush to accommodate the increasing demands from E-Commerce and growing manufacturing sectors such as EV, automotive, electrical appliances, foods and beverages, etc.

According to the report, 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.

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 demand to cater to 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 has 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 for attractive industrial clusters, incentive packages and infrastructure investments.

Despite an unfavorable experience from 2011 Thailand floods, 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 estate developers and operators have implemented flood preventive measures. In addition, 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 route will help boost logistics efficiency.

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 an additional 1.7 million sqm GFA of prime grade warehouse and logistics space 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

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 100,000 as of March 31, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit