Proximity service (ProSe), using the geographic location and device information by considering the proximity of mobile devices, enriches the services we use to interact with people and things around us. ProSe has been used in mobile social networks in proximity and also in smart home and building automation (Google Home). To enable ProSe in smart home, reliable and stable network protocols and communication infrastructures are needed. Thread is a new wireless protocol aiming at smart home and building automation (BA), which supports mesh networks and native Internet protocol connectivity. The latency of Thread should be carefully studied when used in user-friendly and safety-critical ProSe in smart home and BA. In this paper, a system level model of latency in the Thread mesh network is presented. The accumulated latency consists of different kinds of delay from the application layer to the physical layer. A Markov chain model is used to derive the probability distribution of the medium access control service time. The system level model is experimentally validated in a multi-hop Thread mesh network. The outcomes show that the system model results match well with the experimental results. Finally, based on an analytical model, a software tool is developed to estimate the latency of the Thread mesh network, providing developers more network information to develop user-friendly and safety-critical ProSe in smart home and BA.