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Warehouse rental business is one of the service businesses that are important to various operations of logistics, including production, trade, and transportation.

According to the research of Krungsri, during 2022-2024, the demand for warehouse rental is likely to increase by 3.5% per year. The important points will be summarized as follows:

1. Factors contributing to the increase in warehouse demand are:

1.1 Project development in industrial estates will expand better:

• For industrial estates in the eastern region, the rental demand and the return on infrastructure investment in the EEC area will increase continuously;
• For industrial estates in the central region, the demand for renting or buying a space will grow due to physical advantages in transportation, causing the income to increase; and
• For industrial estates in other regions, the demand for renting or buying a space will not be high, resulting in a slow growth;

1.2 Online businesses have expanded increasingly, such as:

Automobiles, electrical appliances, digital services, and software products; and

1.3 Entrepreneurs are likely to expand their investments in general warehouse spaces with an average increase of 3.0% per year:

• For refrigerated/frozen warehouses, the demand for space rental services is likely to remain stable close to those in 2021; and
• Food, vaccination, and drug businesses have expanded.

2. Factors that must be emphasized by warehouse business during 2022-2024 are:

2.1 Large entrepreneurs’ investment in expanding rental spaces;

2.2 New entrepreneurs’ expansion of investment that comes mostly from real estate businesses; and

2.3 Restrictions on town planning that define specific areas for constructing a warehouse.

However, the warehouse business will still be watched over the next three years because it is another service that plays a role in logistics and encourages each business to manage their operations efficiently.

Credit: krungsri.com

 

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