CBRE Thailand, a leading global real estate consulting firm, states that 2026 will mark a new benchmark year for the retail sector in Thailand due to a wave of new retail space entering the market, raising the operational performance standards of projects. The total retail space in Bangkok is expected to reach 8.25 million square meters by the end of the year, with plans for an additional 300,000 square meters to be completed in 2026. As new projects come into the market, competition will intensify, and operational performance will clearly polarize between well-positioned projects and those lacking continuous development.

CBRE's Research Department anticipates that the new retail space will exceed tenant demand, potentially causing the average rental rate to drop below 90% for the first time in several years. Meanwhile, changing consumer behavior is revealing a widening gap between what traditional retail projects offer and what customers currently expect.

Dr. Jariya Tamtrongkitkul, Head of Retail Space and Real Estate Transaction Management at CBRE Thailand, stated that 2026 should be a year of purposeful business repositioning rather than superficial rebranding.

“We are witnessing a clear shift in the factors driving customer visits and brand loyalty. Customers continue to spend, but the 'reasons' behind their visits have changed,” Dr. Jariya said. “Experiences related to dining, recreation, health, services, and community lifestyle activities are becoming increasingly important in location selection. For many traditional retail projects, the risk is not a sudden decline but a gradual loss of appeal as conventional layouts no longer meet current customer expectations.”

One interesting point noted in CBRE Thailand's 2026 real estate market trends report is that traditional layouts are becoming less significant. The 70:30 ratio of retail space to food and beverage (F&B) is no longer a reliable standard. In high-performing retail projects, CBRE has observed a shift towards more flexible space allocation that emphasizes lifestyle, with recreational, health, and social activity areas occupying a larger share.

“Not every zone needs to maintain its traditional retail format,” Dr. Jariya added. “Underutilized rooftop spaces are being transformed into dining zones, while quiet walkways are being developed into health or service business zones. Projects that increase flexibility in space allocation instead of adhering to traditional models will better meet the strategies of tenants and the evolving behaviors of consumers.”

CBRE indicates that bridging the gap between what projects offer and changing demands does not always require complete redevelopment. Operational profits are often driven by targeted reinvestment, improvements to common areas, redesigning pathways, and tenant selection, as well as integrating essential service businesses such as education, beauty, and financial services to maintain consistent customer traffic.

Additionally, retail projects are being managed more proactively and comprehensively, not just in terms of leasing space but also by utilizing systems and data. This includes implementing ESG practices to enhance energy efficiency and analyzing performance data, tenant engagement, and customer feedback to understand real-time dynamics.

“The question for retail space owners now is not whether to develop the space but how quickly they can adapt. A clear identity, flexible layout, and strong operational capabilities will determine the performance of retail businesses in 2026 and beyond,” Dr. Jariya concluded.