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The Reasons To Rent Your New Business Premises Rather Than Buy Outright In Thailand
If you don’t have the necessary finances in place to purchase a business property outright, and you do not want to be putting your home property and any other assets that you have as a guarantee to a lending institution, it makes sense to rent your new business premises rather than spending all of your money in one go.
Buying or rent business premises is certainly the way to go, but there are also a number of risks to buying when renting is a better option.
It doesn’t matter if you are a citizen of Thailand or a foreigner who sees the business potential here in Thailand; there’s no reason why you can’t take advantage of rental prices here, which are incredibly competitive.
There is always a factory to rent in Pathum Thani (which can also be referred to as เช่าโรงงานปทุมธานี in the wonderful Thai language).
The Current Demand For Commercial Real Estate In Thailand
Commercial real estate is mainly the kind of property that is used for various building purposes. It can be an office building, warehouses, retail spaces, and industrial properties.
And what about the in-scope and out-of-scope of the real estate? The in-scope mainly includes office buildings, retail spaces, warehouses, and industrial properties.
As for the out-of-scope, it comprises residential real estate, publicly owned buildings owned by the local government, and those that are used for public health care services.
In Thailand, the commercial real estate is currently experiencing a surge, which is driven by strong economic growth and foreign investment.
Here’s the detailed statistical data (taken from Statista.com):
- Thailand’s commercial real estate market is about to achieve the value of US$428.43bn in 2025.
- The prediction says that there is going to be a compound annual growth rate of 0.34% during the CAGR 2025-2029. This can further lead to the market value of US$434.36bn.
- The United States is expected to generate the highest value, which is expected to reach US$25.8 trillion in 2025.
- Lastly, the commercial real estate in Thailand is also experiencing this growth, thanks to the blooming economy and increasing foreign investment.
The Rent Business Premises In Thailand
The Thai commercial real estate market is estimated to be USD 18.01 billion in 2025. It is projected to reach USD 24.07 billion by 2030, with a CAGR of 5.97%.
Bangkok is the dominant market, holding about 72% of the total commercial real estate value in Q1 2025.
The Eastern Seaboard, particularly Rayong and Chonburi, is seeing rapid growth. It is fueled by the Eastern Economic Corridor (EEC), with industrial and logistics investments increasing by 12.3% year-over-year in February 2025.
What Is The Sector-Specific Trends In Rent Business Premises In Thailand?
In case of the Office space:
- Significant new prime office space is expected in the Bangkok Central Business Area (CBA) by 2028. It is potentially doubling the current stock.
- Older buildings face challenges due to a “flight-to-quality” trend, leading to renovations focusing on ESG certifications.
- Newer office buildings commanded a 22.5% rental premium in Q3 2023, while older ones saw an 8.8% discount.
- Major mixed-use projects will add substantial Grade A office space and other commercial properties in Bangkok by 2028.
Retail space:
- The retail sector is set for growth, supported by consumer confidence and government initiatives.
- Demand for retail space in various locations is driving shopping mall expansions.
- The sector had a robust 95% occupancy rate in 2023, although new supply in Bangkok in 2024 may impact rates.
Industrial and logistics property:
- Investments in targeted manufacturing surged by 66% in 2023.
- The logistics market is growing, driven by e-commerce.
- The total supply of ready-built warehouses increased by 3.2% in H1 2022 to 4.84 million sq. m, with an 85.5% occupancy rate.
- Average asking rent for ready-built warehouses slightly decreased by 0.5% in H1 2022 to 158 baht per sq. m per month.
- The Eastern Seaboard has the largest supply of factory leasable space.
- Rental rates are highest in Chonburi and Chachoengsao provinces at THB 250 per square meter per month.
What Are The Basic Perks Of Rent Business Premises In Thailand?
For any modern business to be successful, renting the commercial property that you need makes sense for the following reasons.
1. Your Upfront Costs Are Reduced
If you are a new business starting up, it makes more sense to keep most of your capital for expenditure in other areas of the business.
It makes perfect business sense to not purchase commercial property outright at the very beginning, in case things don’t work out as planned.
You still get to enjoy all of the benefits that buying a property entails, which includes the right place for your business to be based, the perfect location, and any additional facilities that you might need, but with no large financial commitment on your part.
2. You Enjoy Reduced Responsibility
If you own the property outright, then the buck stops with you if there are any maintenance issues.
When you lease out a property, it is a much different situation. If there is any damage to the property or ongoing maintenance that needs to be carried out, this is the responsibility of the owner and not you.
You end up spending less money on maintenance, and this is money that you can be paying more effectively within your business.
3. You Enjoy More Flexibility
Nobody knows what the future will hold, and the needs of your customers and your business will change over time.
The hope is that you will be incredibly successful, and the premises that you are currently in may no longer be suitable.
You might need to move to somewhere bigger, and this is more difficult to do if you own the property. The fact that you are renting the commercial property allows you to move on.
If you decide to rent, you should know that the amount stated for rental fees is most likely negotiable. So you can always negotiate a better rate.
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