_China Inventory Influx Fuels Surge in Thailand Warehouse Demand

China Inventory Influx Fuels Surge in Thailand Warehouse Demand

Bangkok, May 2026 – Thailand’s logistics property market recorded a significant rebound in demand during the second half of 2025, driven in part by increased inflows of goods from Chinese manufacturers and ongoing shifts in regional supply chains. This trend has led to a surge in warehouse leasing activity, with net absorption reaching approximately 310,700 square metres during the period.

The influx of inventory from China, as companies seek to navigate global trade uncertainties and tariff-related pressures, has resulted in higher storage requirements across Thailand’s key logistics hubs. Businesses are increasingly holding larger volumes of stock as a buffer against supply chain disruptions, supporting strong demand for ready-built warehouse space.

This dynamic has been further reinforced by broader supply chain diversification strategies. Multinational manufacturers are adopting multi-location production and distribution models to mitigate geopolitical risks, positioning Thailand as a critical node within regional and global supply networks. As a result, logistics facilities in strategic locations such as the Eastern Economic Corridor (EEC) and the Bangkok Metropolitan Region continue to attract strong occupier interest.

In H2 2025, total warehouse supply increased to 6.62 million square metres, while occupied space rose more rapidly to 5.89 million square metres. This pushed the national occupancy rate to 88.9%, reflecting the market’s ability to absorb new supply efficiently. Demand was particularly strong in the EEC, where ongoing industrial expansion and proximity to major ports and infrastructure continue to drive logistics activity.

The sector’s growth is closely linked to the performance of export-oriented industries, many of which are deeply integrated into global supply chains. The electronics sector, for example, recorded robust production growth supported by rising demand for semiconductors, AI-related components, and data centre infrastructure. Similarly, growth in steel production and automotive manufacturing has increased demand for logistics facilities to support raw material storage, component handling, and distribution.

Beyond traditional distribution functions, logistics assets in Thailand are increasingly playing a more integrated role within the production cycle. Warehouses are being used not only for storage but also for staging components, managing cross-border consolidation, and supporting just-in-time manufacturing processes. This shift reflects the growing importance of logistics infrastructure in enhancing supply chain efficiency and resilience.

At the same time, the market is seeing a clear preference for modern, high-specification facilities located within established industrial clusters. Occupiers are prioritising assets that can support automation, real-time inventory management, and seamless connectivity to transport networks. This trend is contributing to stronger performance in prime logistics locations, while secondary assets face more competitive leasing conditions.

Looking forward, the continued realignment of global supply chains, coupled with sustained inflows of trade-related inventory, is expected to support logistics demand in Thailand. While growth may become more efficiency-driven rather than volume-led, the sector is well positioned to benefit from its role as a regional logistics hub, underpinned by strong infrastructure, strategic location, and deep integration with manufacturing activity.

“The current rise in warehouse demand is not being driven solely by stronger consumption, but increasingly by how businesses are managing supply chain risk. The inflow of inventory from China, together with the ongoing diversification of manufacturing bases by multinational companies, is encouraging occupiers to hold higher inventory levels and build greater flexibility into their logistics networks. Thailand continues to benefit from this trend due to its established industrial base and strong regional logistics connectivity.” said Marcus Burtenshaw, Partner and Head of Industry Strategy and Solutions, Knight Frank Thailand.