CBRE forecasts “Year of Repositioning” for Thai retail as supply surge tests asset resilience

CBRE Thailand, the leading international property consultant, has identified 2026 as a defining year for the Thai retail sector, as a new wave of supply raises the bar for asset performance.

Total retail supply in Bangkok reached approximately 8.25 million square meters at the end of 2025, with a further 300,000 square meters scheduled for completion in 2026. As new projects enter the market, competition is intensifying and performance is becoming increasingly polarized between well-positioned assets and those that have not evolved.

According to CBRE Research, new supply is expected to outpace tenant demand, which may see average occupancy fall below 90% for the first time in recent cycles. At the same time, shifting consumer behavior is exposing a growing gap between what older retail formats offer and what customers now expect.

Dr. Jariya Thumtrongkitkul, Head of Retail and Group Transaction Management at CBRE Thailand, said 2026 should be a year of purposeful repositioning rather than vague reinvention.

“We are seeing a clear shift in what drives footfall and loyalty. Customers are still spending, but the ‘why’ behind a visit has changed,” said Dr. Jariya. “Dining, leisure, wellness, services and community-led experiences now play a much bigger role in where people choose to go. For many existing assets, the risk is not sudden decline, but a gradual loss of relevance as traditional layouts no longer match today’s expectations.”

A key finding in CBRE’s 2026 outlook is the declining relevance of legacy space planning. The traditional 70:30 retail-to-F&B ratio is no longer a reliable benchmark. In higher-performing assets, CBRE is observing a shift toward more flexible, lifestyle-led allocations, where leisure, wellness and community uses occupy a larger share of space.

“Not every zone needs to remain traditional retail,” adds Dr. Jariya. “Underutilized rooftops are being repositioned as dining venues, while quiet corridors are evolving into wellness or service zones. Assets that allow space allocation to flex rather than remain fixed are better positioned to respond to changing tenant strategies and consumer preferences.”

CBRE noted that closing this gap does not necessarily require full asset redevelopment. Instead, performance gains are increasingly driven by targeted reinvestment. Improvements to common areas, circulation and tenant mix, alongside the integration of essential services such as education, beauty and financial services, are helping to sustain more consistent, non-discretionary footfall.

Retail assets are also being managed more actively as operating platforms. This includes the adoption of ESG practices to improve energy efficiency, as well as the use of performance data, tenant engagement and customer feedback to better understand what is working in real time.

“The question for landlords is no longer whether their retail spaces should evolve, but how quickly they can adapt,” Dr. Jariya concluded. “A clear identity, flexible space planning and strong operational discipline will define retail performance in 2026 and beyond.”
 

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