By The Nation
This is because of the huge increase in demand driven by the growth of e-commerce.
E-commerce retailers need very high specification warehouses to use as fulfilment centres but developers around the world , are struggling to keep up with demand because e-commerce has been growing rapidly.
James Pitchon, Executive Director at CBRE Thailand, said that e-commerce is just taking off in Thailand, currently accounting for only a small percentage of retail sales, but Thai e-commerce is expected to rise rapidly and should reach the levels of more advanced markets where it accounts for 15-18 per cent of total retail sales.
Based on research by David Egan, Global Head of Industrial and Logistics Research at CBRE, on the relationship between online sales and demand for modern logistics property in the USA, CBRE estimate that, using a similar ratio to the US market, every Bt1 billion of online sales in Thailand will generate 4,000 square metres of demand for e-commerce logistics space.
Adam Bell, Head of the Industrial and Logistics team at CBRE Thailand, believes that 2019 will be the year that demand for modern logistics space in Thailand, especially Bangkok, really takes off.