Retail Space in Thailand: A Look into 2025

Thailand’s retail space market is showing significant signs of recovery, according to CBRE’s latest report. As of 2025, retail space is estimated to reach around 8.3 million square meters, with rental rates expected to increase by 5% in certain prime locations. This steady recovery is driven by the resurgence in consumer demand and the growth of various sectors, particularly the food and beverage (F&B) industry.

Retail Space
Retail Space

Key Trends in Thailand’s Retail Space Market

Thailand’s retail space market is experiencing a revitalization with rental rates steadily rising in areas where demand remains high. The report from CBRE highlights several key factors driving this recovery:

  • Increased Rental Rates: Retail rental rates in some areas are expected to increase by around 5%, reflecting a steady market recovery. These increases are most noticeable in prime areas, particularly in central business districts (CBDs).

  • Varied Rental Prices: Retail rental prices in Thailand can range between 4,000 to 8,000 baht per square meter, depending on the location, demand, and space size. Prime locations typically have higher rates, while outer city zones offer more competitive pricing.

Prime Retail Rental Locations in Thailand

The demand for retail space in Thailand continues to focus on specific areas, with certain districts showing more significant competition and higher rental rates. The top 3 retail rental locations in Thailand are:

  1. Ratchaprasong District: A highly sought-after area, Ratchaprasong consistently sees intense competition due to its central location and accessibility.

  2. Sukhumvit Area: Known for its strong commercial presence, Sukhumvit remains one of the prime locations for retail businesses, especially those in the food and fashion sectors.

  3. Outer City Zones: Areas like Ladprao, Bangna, and around Iconsiam are also attracting increasing demand. These zones offer competitive rental prices while providing access to a growing consumer base.

Retail Space
Retail Space

Retail Space Demand Fueled by Food & Beverage Sector

One of the major drivers behind the growth of retail space in Thailand is the booming food and beverage (F&B) sector. With many foreign F&B brands entering Thailand for the first time, there has been a notable increase in new lease agreements. As a result, shopping malls are expanding their F&B zones, providing more space for restaurants, cafes, and food courts.

In response to this growing demand, malls are focusing on optimizing their layouts to accommodate larger F&B zones, ensuring that they meet the needs of both international and local F&B brands.

Retail Space Occupancy and Investment Trends

As of the fourth quarter of 2024, Thailand’s overall retail occupancy rate stood at 94.8%, reflecting a 1.3% increase compared to the same period the previous year. This high occupancy rate indicates a strong recovery in the retail market as businesses continue to invest in prime retail spaces.

Factors Influencing Retail Space Rental Rates

  • Business Type: Different types of businesses, such as fitness centers and supermarkets, require larger spaces and have distinct pricing structures compared to typical retail tenants.
  • Location: Prime locations such as Sukhumvit and Ratchaprasong attract higher rental prices due to the high demand and accessibility.
  • Space Size: Limited space within high-demand areas commands higher rents, making prime retail locations even more competitive.

Conclusion: Positive Outlook for Retail Space in Thailand

The retail space market in Thailand is experiencing a positive recovery, fueled by growing demand in prime locations and the expanding food and beverage sector. As the market continues to evolve, businesses looking to secure retail space will find opportunities in both central and outer city zones. The steady rise in rental rates and high occupancy levels reflect a market that is returning to pre-pandemic growth levels, creating new opportunities for investors and retailers alike.

For more insights into retail space in Thailand, stay updated with our market analysis and reports.

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