Economic forecasts for Thailand indicate a continuous improvement, with real estate being one of the key drivers of the economy. The retail sector is particularly interesting within the real estate market, as Thailand's retail market has seen rapid growth in recent years, contrasting with retail markets in other countries that have been affected by online shopping and rapid changes in consumer behavior.

Retail continues to grow, especially in Bangkok, where operators are rapidly developing new projects to stay competitive, whether they are small or large. Since the opening of Siam Paragon in 2006, many leading shopping centers have renovated their spaces, particularly in the Rama 1, Ratchaprasong, Ploenchit, and Sukhumvit areas. The average rental space in this area, which spans from the head of Rama 1 to Siam Discovery all the way to central Sukhumvit and EmQuartier, currently has an average vacancy rate of less than 5%, and rental prices have been steadily increasing. Retailers may have to wait for years to secure rental space in many popular malls. Currently, the food and beverage business is a primary draw for customers in malls, utilizing online media as a strategy to attract customers both domestically and internationally. Additionally, the growth rate of tourists in Thailand remains a significant driving force for the Thai retail market, with last year's revenue from tourists growing by 11.66%.

Gaysorn Tower is the latest supply in the Rama 1-Sukhumvit area, which launched last year with over 10,000 square meters of commercial rental space, bringing the total rental area in the Rama 1-Sukhumvit area to approximately 660,000 square meters, with an average rental price of 3,900 baht per square meter per month and a rental rate of 96.4%.

However, large plots of land in the Rama 1-Ratchaprasong area extending to central Sukhumvit are currently very scarce, and land prices have risen significantly, resulting in limited new supply in this area. Operators are increasingly interested in long-term leases and are also looking for new locations in other parts of Bangkok and its suburbs. Given the rapid changes in the current era, operators must prepare to adapt to changing consumer behaviors. Many are beginning to consider offering 24-hour services to meet customer demands as much as possible.

Mr. Theerawit Limthongsakul, Managing Director of Nexus Real Estate Advisory Co., Ltd., stated, "Many businesses now want to operate 24 hours, such as coffee shops, restaurants, co-working spaces, or even entertainment centers in various forms. This is seen as an opportunity for many businesses, which will impact the shape of the Thai retail market."

In addition to changing consumer behaviors, technology plays a crucial role in daily life, providing increased convenience. At the same time, a growing number of people are seriously focusing on health, as evidenced by the ongoing health-related activities. However, consumers also desire convenience in accessing good health, leading to the emergence of health-related businesses such as fitness centers or various health classes. Exercise facilities are now found in almost every building, especially in residential buildings like condominiums, shopping malls, or community malls, as well as various office buildings. The fitness business in Thailand has been continuously growing over the past few years, with many well-known brands planning to expand their branches. However, most fitness chains target the upper market, while mid-range fitness centers are often operated by smaller businesses, creating a market gap for mid-range fitness.

When convenience and health trends converge, it leads to the emergence of 24-hour health business models. At least three foreign brands of fitness centers that operate 24 hours have recognized the market potential in Thailand and have entered as new players, each trying to find rental spaces that differ from existing fitness centers. The main requirement is to rent ground-floor spaces that are visible and easily accessible. However, most operators still do not understand these needs and accept that "it will take some time to help many operators understand that fitness centers can attract customers to the area like Starbucks or McDonald's," Mr. Theerawit noted.

The future of the retail market continues to show steady growth and remains an attractive prospect. The challenge for operators will be the changing technology that affects consumer behavior. The question is how to leverage technological advantages to create differentiation, enabling them to compete and meet consumer demands effectively.

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