Nexus Property Consultants Co., Ltd.

A Member of the Cushman & Wakefield

Alliance Program
31st Fl., BKI Building/ Y.W.C.A. 25 South
Sathorn Road, Thungmahamek, Sathorn,
BKK 10120, Thailand
www.nexus.co.th
For more information, contact:
Teerawit Limthongsakul,
Executive Director
662 286 8899
teerawit@nexus.co.th
The market terms and definitions in this report are based on NAIOP standards. No warranty or representation, express or
implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to
errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions
imposed by our principals. 2013 Cushman & Wakefield, Inc. All rights reserved.

H2 2013
BANGKOK, THAILAND
INDUSTRIAL SNAPSHOT

MARKETBEAT
A Cushman & Wakefield Research Publication
ECONOMY
The Thai economy experienced a slow
growth in the second half of 2013 due to a
deceleration in private consumption and
investment, decreasing exports, and a
slackening global economy. The economic
growth was also affected by the ongoing political conflict, which has
been undermining the nations investment reliability since October.
The National Economic and Social Development Board (NESDB)
has once again slashed its 2013 annualized GDP forecast from 3.8-
4.5% to 3%, after a lower-than-expected GDP of 2.7% for the third
quarter of 2013 was announced.
The Manufacturing Production Index (MPI) in the third quarter
reached 173.6 (-3.5% year-on-year), indicating Thailands weakening
industrial activity in the last quarter of the year, particularly in the
automotive manufacturing industry. Thailands industrial exports
index also reduced by 0.2%. Despite the negative impact to
Thailands economy, the Bank of Thailand forecasts next years
exports to grow at least 5-6%, benefiting from the global economic
recovery.
RESILIENT SERVICED INDUSTRIAL LAND PLOTS MARKET
The Industrial Estate Authority of Thailand (IEAT) has revealed its
number for SILP supply at 116,060 rais with a slightly increased
weight average price of THB3.68 million per rai (/rai), representing
a 4.7% growth from last year with a strong occupancy rate of 84%.
The area with the highest stock remains at Eastern Seaboard Zone
with 54,899 rais (21,705 acres), while Eastern Zone has the highest
average price at THB4.1 million/rai with the current peak of
THB7.5 million/rai found in Wellgrow Industrial Estate.
READY BUILT FACTORY MARKET EXPANDS
The total supply of Grade A Ready Built Factory (RBF) has grown
to 1.67 million square meters (sq.m.) or 17.97 million square feet
(msf). Likewise, the average rental rate has increased to THB189.84
per square meter per month (/sq.m./mo.), showing a 2% increase
from last quarter, while the RBF occupancy rate stood sturdy at
82%.
The highest rental rate, unchanged from the previous quarter, is
found in Eastern Zone at THB192/sq.m./mo., with the peak found in
Amata Nakorn at THB230/sq.m./mo. However, the area with the
highest concentration of Grade A RBF is Eastern Seaboard Zone
with a total supply of 0.66 million sq.m. (7.10 msf), due to its
expanding heavy industry development and unrivalled location.
STRONG READY BUILT WAREHOUSE MARKET
The total stock of Grade A Ready Built Warehouse (RBW) has
rose to 2.92 million sq.m. (31.43 msf) with the average rental rate
at THB152.46/sq.m./mo. Eastern Zones occupancy rate rose to
97% as it has become the most desirable area due to its
incomparable location and accessibility. Its stock has rapidly grown
to 1.48 million sq.m. (15.93 msf), with a rental rate of
THB168.50/sq.m./mo.
OUTLOOK
Regardless of a slackening economy in the last half of 2013,
Thailands industrial estate market still has a great potential to
continuously grow in the next year due to the increase in demand
and new supply. If the political issues were solved, Thailand would
be one of the most desirable targets for international firms because
of its beneficial regulation for foreign firms relocation and
investment.

MARKET STATISTICS
MARKET/
SUBMARKET
H2 2013 AVERAGE NET EFFECTIVE RENTAL
RATE (/SQ.M./MO.)
FACTORY THB EURO US
Northern Zone*
Eastern Zone*
Eastern Seaboard Zone*
191.27
191.96
186.27
4.24
4.26
4.13
$5.80
$5.82
$5.65
WAREHOUSE THB EURO US
Northern Zone*
Eastern Zone*
Eastern Seaboard Zone*
143.88
168.51
145.00
3.19
3.74
3.21
$4.36
$5.11
$4.39
*Remark: Northern Zone is Ayutthaya, Pathum Thani and Saraburi
Eastern Zone is Samutprakarn, Chonburi, and Chachoengsao
Eastern Seaboard Zone is Lamchabung and Rayong

SERVICED INDUSTRIAL LAND PLOTS (SILP)

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7
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Total Land (Rai) Available Land (Rai) Selling Price (M.Bt/Rai)