Industrial estate developer Prospect Development expects greater diversification among global suppliers relocating to Thailand, alongside continued growth in e-commerce, to drive demand for ready-built factories and warehouse space.
Managing director Rachanee Mahatdetkul said the conflict involving the US, Israel and Iran has disrupted investor trips, but also serves as both a signal and a catalyst for investors to accelerate their search for safer locations to establish manufacturing bases.
"Last year, when Donald Trump announced new tariffs, we immediately saw new deals coming in," she said. "Thai-flagged vessels passing through the Strait of Hormuz during periods of disruption further enhance Thailand's appeal as a preferred destination."
Recently, some agents have reported enquiries from the Middle East, but investors remain in a wait-and-see mode, unlike those from China, who are more affected by geopolitical tensions. However, they continue to prioritise safety and continuity in production.
Ms Rachanee said that this year will be particularly challenging for the industrial sector from the outset, but global consumption, production, distribution and logistics activities continue to move forward.
"Manufacturing relocation, particularly from China, will continue even as the world faces ongoing crises," she said. "Demand for factory and warehouse space remains robust, supported by the growth of domestic e-commerce as well as ongoing import and export activity."
In 2026, the company aims to sustain growth by securing new tenants for an additional 150,000 square metres, maintaining an occupancy rate of at least 90%, and expanding projects near existing sites to build an industrial hub.
"The industrial hub-driven growth model will be adopted this year to develop strategic locations that support manufacturing, logistics and integrated supply chain connectivity, attracting businesses to establish operations and grow together over the long term," Ms Rachanee said.
The strategies include developing flagship projects, creating clusters and building ecosystems across its three strategic locations: Bang Na–Trat KM 23 in Bang Phli, Samut Prakan; Bang Pakong in Chachoengsao; and Wang Noi in Ayutthaya.
Last month, the company's new industrial estate project on a 1,000-rai site in Bang Pakong received approval for its environmental impact assessment (EIA). It will offer a saleable area of 670 rai worth 8.5 billion baht, with the first phase slated for 2027.
This year, the company plans to invest 1.5 billion baht to develop three projects with a combined space of 100,000 square metres. The largest is Bangkok Free Trade Zone (BFTZ) 10 in Wang Noi, with 50,000 sq m.
On Bang Na-Trat KM 20 Road, it will develop BFTZ 9, with built-to-suit space spanning 42,000 sq m, and BFTZ 8 on Theparak Road, with a rental area of 27,000 sq m.
The company targets 1 billion baht in revenue this year, compared with 1.22 billion baht last year, which represented growth of 67.6% from 2024.
Earnings before interest and taxes rose 196% to 658 million baht, while the occupancy rate reached 96% and the average rental rate stood at 180 baht per square metre per month.
STAYING ALERT
The top five tenant industries were: logistics; industrial materials and machinery; personal products and pharmaceuticals; food and beverage; and electrical appliances. The top five tenant origins were Thailand, China, Europe, Japan and the US.
"We operate in a high-growth industry, but risk management remains essential. We prioritise liquidity, ensuring existing space generates optimal income. If occupancy falls below 90%, we will hold back on new investments," Ms Rachanee added.
