M A R K E T B E AT Retail H2 2020

YoY 12-Mo. Economy Contracted 6.7% in First Nine Months Chg Forecast National Economic and Social Development Council (NESDC) data shows that ’s economy declined by 6.4% in Q3 2020, improving from 0% a 12.1% contraction in the previous quarter. After seasonal adjustment, the economy increased by 6.5% from the second quarter (% q-o-q sa). In Rent Growth the first nine months of 2020, the overall economic contraction was 6.7%. In 2021 the economy is expected to expand within the range of 3.5% – 4.5%, supported by four major factors: improvement in domestic demand, recovery in the world economy and global trade, the government 7.0% budget’s disbursement and economic stimulus measures, and the low growth base in 2020. Meanwhile, headline inflation is expected to be in the Vacancy Rate range of 0.7% - 1.7%, and the current account is forecast to register a surplus of 2.6% of GDP.

-8.0% Market Demand Still Impacted by Absence of International Tourists Retail Sales Growth In 2020, there was no new supply added in the city’s Central Retail District (CRD) area. Meanwhile, demand from inbound tourism in the second Source: NEXUS, BOT (Bank Of Thailand) half dropped by almost 100% y-o-y due to continuing COVID-19 travel restrictions. Shopping malls started to resume operations in May, but CRD footfall in 2H 2020 was still unable to recover to normal levels as international visitors are a key driver of purchasing power in the CRD. Available THAI ECONOMIC INDICATORS retail space in the CRD remained tight with occupancy at 93%, marginally down from the 93.2% of the first half, with the closed down of the Isetan Q3 2020 store at Central World in August. Nevertheless, the retail market still needs close monitoring, with change possible at any time while the global pandemic remains active. YoY 12-Mo. Chg Forecast -6.4% Average Rental Level Stabilized GDP Growth In the second half of 2020 tenants started to take up vacant spaces. The average monthly asking rental level remained unchanged from the first half at approximately THB3,915 per sq m. Additionally, it is forecast to remain stable in the coming 12 – 24 months with the gradual recovery of the -0.7% economy. Further ahead, rental growth is expected to resume once the pandemic is effectively contained and international travel returns. Consumer Price Index (CPI) Growth RENT / VACANCY RATE (CRD) SUPPLY PIPELINE (CRD) 1.9% THB/sqm/mo Sqm Unemployment Rate Vacancy rate 4,000 10% 60,000

3,800 8% Source: NESDC (National Economic and Social 40,000 Development Council) 3,600 6%

3,400 4% 20,000

3,200 2% 0 3,000 0% 2021 2022 2023 2024 1H 16 2H 16 1H 17 2H 17 1H 18 2H 18 1H 19 2H 19 1H 20 2H 20 Source: NEXUS Source: NEXUS M A R K E T B E AT BANGKOK RETAIL Retail H2 2020

MARKET STATISTICS

PLANNED & UNDER GRADE A ASKING RENT INVENTORY* SUBMARKET VACANCY RATE CONSTRUCTION (SQM) (SQM) THB/SQM/MO US$/SF/MO EUR/SQM/MO

Siam Square 242,825 2.3% - THB 4,100 US$ 12.68 €111.86

Ratchaprasong & Ploenchit 292,420 13.1% - THB 3,894 US$ 12.04 € 106.23

Phrom Phong 121,000 1.3% 60,000 THB 3,750 US$ 11.60 € 102.31

OVERALL BANGKOK CRD TOTAL 656,245 7.0% 60,000 THB 3,915 US$ 12.11 € 106.80

* Only Grade A Shopping Center

1 US$ = THB 30.0333; 1 € = THB 36.6544

KEY LEASE TRANSACTIONS 2H 2020 PROPERTY SUBMARKET TENANT SQM LEASE TYPE GARETH MICHAEL POWELL The PARQ Non-CRD Rana IV Jetts Fitness 1,000 New Lease Senior Director, Integrated Facilities Management *Renewals not included in leasing statistics Tel: +66 2168 3101 (Ext. 110) [email protected]

TEERAWIT LIMTHONGSAKUL SIGNIFICANT PROJECTS UNDER CONSTRUCTION Managing Director PROPERTY SUBMARKET TYPE SQM OWNER/DEVELOPER COMPLETION Nexus Real Estate Advisory Co.,Ltd. Siam Scape CRD Office Plaza 4,500 PMCU 2021 31st Fl., BKI Building/Y.W.C.A. Rama 3 Non-CRD Rama III Shopping Mall 43,200 LHMH 2021 25 South Sathorn Road, Thungmahamek, Sathorn, Bangkok Mall Non-CRD Bangna Shopping Center 80,000 2022 BKK 10120, Thailand www.nexus.co.th One Bangkok Non-CRD Rama IV Shopping Center N/A TCC Assets & Fraser Property 2022 Tel: +662 286 8899 Marketplace Thonglor Non-CRD Sukhumvit Community Mall 7,115 Siam Future Development 2022 The Forestias Non-CBD Bangna Shopping Center N/A MQDC 2022 cushmanwakefield.com EmSphere (Emporium 3) CRD Phrom Phong Shopping Center 60,000 The Mall Group 2022 Silom Square Non-CBD Silom Office Plaza 9,700 Nye Estate & Minor Group 2023 A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers One City Center CRD & Ploenchit Office Plaza 4,000 Raimon Land & Mitsubishi Estate 2023 exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the Dusit Central Park Non-CRD Rama IV Shopping Center 80,000 2024 largest real estate services firms with approximately 53,000 employees in 400 offices and 60 countries. In 2019, the firm had revenue of $8.8 billion across core services of property, Central M CRD Ratchaprasong & Ploenchit Shopping Center N/A Central Group N/A facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.

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