Our research recommends that non-residential needs are fueling much of the current sector expansion. About half of existing need for self-storage Thailand is coming from entrepreneurs as well as SMEs searching for versatile storage services for recently established e-commerce organizations and from smaller sized workplace occupiers who are wanting to adopt more flexible office atmospheres implemented by the entrance of significant co-working operators.
The most effective drivers on the market today are those that have picked locations that are conveniently accessible by a vehicle as well as public transportation, for midtown/city locations, and have all at once crafted advertising strategies that target particular customer sectors in each location. One vital success element for new market entrants is having an adaptable, phased build-out strategy. For example, one new multistory procedure has been developed out one floor each time as need warrants, with system dimensions on each floor being customized to detail client segments as need develops. Various other operators that have finished building out in a single phase are struggling with unit dimensions/mixes that the market does not currently desire.
On the demand side, we anticipate further development in the self-storage space market, with significant potential for future needs from little e-commerce drivers. Thailand is presently Southeast Asia’s second-largest e-commerce market as well as is anticipated to expand by more than four times with 2025 according to Google and Temasek.
In regards to potential new supply, anticipated changes to land and real estate tax policies due in 2020 are anticipated to put a hefty concern on owners of unutilized land. Landowners are thus likely to search for customers or lessees looking for long-lasting leases to assist in settling tax costs, which can create an adequate possibility for luggage storage Bangkok space drivers to make use of and develop new outlets.
While the rate of growth over the following few years continues to be seen, we fully expect the industry to remain to draw passion from residential as well as international investors alike.