Prime malls keep Thailand’s retail market steady despite tourist slowdown

F&B remains the strongest driver of new leasing activity.

Thailand’s retail market remains stable despite a drop in overseas visitors, with prime malls continuing to outperform and secondary centers struggling to keep pace, according to CBRE.

According to CBRE's Asia Pacific Retail Trends Q3 2025 report, prime malls, managed by experienced landlords, are maintaining high occupancy rates, whilst non-CBD and secondary locations continue to face challenges.

Although tourist arrivals have dipped over the past six months, stronger local spending and rising foot traffic have helped offset the impact.

Landlords have also attracted new-to-market brands to sustain momentum, the report said.

International retailers, especially from China and Japan, remain active in securing spaces in Bangkok’s top malls and new developments.

The food and beverage (F&B) sector continues to drive leasing, accounting for about 40% of new openings.

Cafés and casual dining concepts are leading growth, supported by both new foreign entrants and local brand spinoffs.

Brand collaborations and seasonal concepts are increasingly used to boost sales.

CBRE said the health and wellness segment is also expanding, with more fitness operators and recreation centers entering the market.

Prime mall owners are investing in asset upgrades to counter reduced tourist traffic and prepare for new supply coming in 2026. Efforts include themed retail zones, rotating pop-ups, and a sharper tenant mix targeting local customers.

Meanwhile, suburban malls are adding public areas, rooftop gardens, event spaces, and co-working zones to build community engagement and attract more visitors.

Landlords are advised to focus on concept diversification and experience-led strategies to sustain traffic and draw new brands.

CBRE said retailers can tap into the first-store economy by launching debut concepts or exclusive collaborations to capture consumer attention.

Those targeting mid-market customers should also consider expanding into suburban malls to benefit from lower rents and broader market reach.