Bangkok’s office market shows recovery amid shifting tenant demands
The office market in Bangkok is quietly showing signs of recovery, especially in the central business district (CBD), thanks to the adaptation efforts of large corporations.
Meanwhile, areas outside the CBD are stepping up their game, balancing “rental rates” with “value for money” to capture demand from tenants seeking new options for long-term cost management.
Panya Jenkitvathanalert, executive director and head of office agency at Knight Frank Thailand, noted that in the first quarter of this year, the average offered rent in the CBD rose slightly by 0.2% from the previous quarter to 966 baht per square metre per month. Meanwhile, occupancy increased by 0.7% to 77%.
This marks another quarter demonstrating strong business confidence in these prime central locations, despite the higher costs involved.
The Silom–Sathorn–Rama IV area stood out the most, with rents climbing 0.4% to 971 baht per square metre per month, and occupancy surging 1.9% to 76%. This reflects how locations with diverse transport links and strong corporate reputations continue to attract leading companies.
By contrast, the Ploenchit–Chidlom–Witthayu and Nana–Asok–Phrom Phong districts saw only modest rent increases of 0.1–0.2%, reaching 1,091 and 944 baht per square metre respectively. However, occupancy rates in both areas dipped slightly by 0.5%, indicating tenants are becoming more selective, seeking a balance between location, price, and functionality.
Outside the CBD, once viewed as an alternative for small to medium enterprises, these areas have now become a new battleground for the office market. Average rents increased slightly by 0.2% to 670 baht per square metre per month, while occupancy remained steady at 79%.
The Phetchaburi–Rama IX–Ratchadaphisek corridor remains strong in both demand and supply, with rents rising 0.2% to 729 baht and occupancy inching up to 80%, underscoring its growing appeal as a new CBD.
Conversely, Phahonyothin–Vibhavadi saw rents rise by 0.3% to 683 baht but occupancy fell by 0.3% to 78%, signalling a cautious market waiting for further infrastructure support.
The standout performer outside the CBD was Bangna–Srinakarin, where occupancy soared by 1.4% to 71%, despite a low rental base of 620 baht per square metre per month. This growth highlights the area’s potential to meet the needs of businesses requiring large spaces but controlled costs.
The rental market game is no longer just about location
Knight Frank Thailand pointed out that fluctuations in rental rates and absorption across different zones reflect changes in Bangkok’s office market, which now depend less on “district” and more on the “value” each area offers tenants — including cost efficiency, transport convenience, flexibility, and developer credibility.
Amid renewed competition, market players must look beyond price and vacancy rates. In a tenant-driven market, “quality and service” will be decisive factors in the office leasing game going forward, Panya explained.
Meanwhile, 2025 is expected to be a “golden year” for new supply, with 835,000 square metres currently under construction and an anticipated 524,000 square metres set to enter the market this year.
Notable projects include The Central Phaholyothin, developed by Central Pattana, poised to shake up the market — particularly for competitors who have yet to upgrade their buildings to meet evolving tenant demands.
Bangkok’s office market is at a critical turning point. It is shifting from a landscape once defined by price and location to one measured by customer care and risk management. In today’s uncertain world, “confidence” is the most valuable asset for office buildings, Panya added.
