Thailand retail real estate has been affected by the country’s rapid embrace of online shopping. However, it has been unable to entirely disrupt brick-and-mortar stores and malls as people still enjoy offline experiences, such as eating out, that are not possible digitally.
In the Kingdom, landlords and tenants have found new ways to cooperate as they look to provide shoppers with the best experience. Notable changes include the creation of curated zones that operate under a GDP sharing scheme as opposed to rent and the incorporation of technology that blends online and offline elements. Both are important to retailers looking to save money and produce offerings more in tune with what consumers are looking for.
“Although the importance of online shopping, payment and fulfillment will continue to grow, landlords will continue to invest in their bricks and mortar real estate to re-attract footfall. While online retailing offers convenience and offline offers experience, both are equally important and need a seamless integration,” Jariya Thumtrongkitkul, Head of Retail at CBRE Thailand, explained during the consultancy’s recent 2023 Thailand Real Estate Market Outlook.
Competition across the Thailand retail real estate sector remains fierce with Bangkok remaining the hub of activity. According to CBRE, six sizeable shopping developments are under construction with a further seven projects in the pipeline. Two of these, Bangkok Mall and EmSphere, will have large arenas for sports, concerts and other events as they look to launch new experiences beyond what is currently available.
Another Thailand retail real estate trend to watch is the development of mid-scale retail developments outside urban hubs. These are now required to support the needs and lifestyles of suburban residents living in low-rise housing on the outskirts of central locations.
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