Investment Decision Making for Development of Rental Warehouses: A Cases Study of Warehouse Developers in Samut Prakan Province

Abstract

This study aims to examine investment decisions of developers on rental warehouse projects in Samut Prakan Province. Structured interviews were conducted, with questions developed from concepts in property development and investment decision factors. Participants included four warehouse developers and three real estate consultancy firms. Data were analyzed using content analysis, combined with mode analysis to prioritize key macro- and micro-level factors, while mean values were used for detailed ranking of sub-factors. Comparisons across respondent groups explored similarities and differences in factor importance, providing both qualitative and quantitative insights.

Findings reveal that: (1) developers agree that rental warehouses hold long-term growth potential, driven by e-commerce expansion, manufacturing relocation, and Thailand’s role as a regional logistics hub; (2) the development process consists of four main stages: market survey, target customer identification, land acquisition, and feasibility study; and (3) the most critical investment factors for both listed and non-listed developers are government policies, physical feasibility, and market and financial viability.

The study highlights that developers’ decisions strongly relate to direct factors influencing project success, such as physical and market conditions, as well as indirect factors like government policies, especially in infrastructure and investment incentives. Developers also focus on high-standard designs to meet diverse tenant needs and enhance occupancy rates, supporting sustainable returns.