Bangkok’s retail landlords can expect higher occupancy rates in 2015 as the retail sector recovers in the wake of this year’s political instability.

In its quarterly Bangkok Retail Research & Forecast Report, Colliers International says demand from all international and Thai shops remains strong in the last quarter of 2014 and that will continue into next year, “so the average occupancy rate in the retail business will grow three to five per cent in 2015, especially in the City area”.
“The average occupancy rate of all categories, except supporting retail, is more than 95 per cent, while the take-up rate of supporting retail is nearly 90 per cent, with not much movement during the past few quarters,” the report concluded.
“Superstore malls and specialty stores have the highest occupancy rate, because they use most of the space in a project. Some community malls are not successful or cannot maintain their popularity for more than two years, so some shops close or move out and leave the space vacant, which affects the project’s image.”
Colliers says the new military government is trying to improve Thai confidence and restore the country’s image.
More than 1.5 million sqm of retail space is expected to become available in the fourth quarter of 2014 and all of 2015.
The occupancy rate in all areas in the third quarter of 2014 remains similar to the previous quarter, but the city area increased more than other locations because of some new brand name and luxury shops moving in. Despite the political crisis in the first half of 2014, many new foreign and Thai retailers still opened shops in Bangkok and some tourist destinations.
Colliers says some large-scale shopping malls under construction are expected to be completed in 2014 – 2016, especially in Suburban Bangkok.
Through the rest of this year and next, community malls will continue to grow, especially in Bangkok’s suburbs.
“The main retail developers in Thailand are now focusing more on other cities across the country, especially in some border provinces and main cities in each part of Thailand. Many superstore malls and specialty stores are opening in provinces bordering other countries, while some retail developers are announcing the development or expansion of shopping malls in some main cities.”
Source insideretail.asia