Mixed-Use Mega-Projects Shake Up Bangkok's Commercial Property Market
Developers ditch single-use strategy as mega-projects like One Bangkok and Dusit Central Park raise the bar, forcing older CBD offices to adapt or lower rents
- Developers are rapidly shifting to large-scale mixed-use projects, combining office, retail, hotel, and residential spaces, as a core strategy to revitalize urban areas and manage economic uncertainty.
- The influx of new office space from these mega-projects, such as One Bangkok, is creating intense competition in the Central Business District, forcing older buildings to reduce rents to retain tenants.
- These new developments are introducing tenant-focused innovations, like furniture rental to lower tenant costs or converting rent into advertising credits, to gain a competitive edge.
- The retail components within these projects are being transformed into "lifestyle hubs" that integrate with hotels to attract modern consumers and tourists, enhancing the property's long-term value.
Thailand's commercial real estate sector is undergoing a massive structural transformation, with developers rapidly shifting their portfolios towards mixed-use projects as a core strategy to combat economic uncertainty and unlock unprecedented value from large urban land plots.
These large-scale developments—which combine office towers, hotels, residential units, and retail spaces—are no longer a fleeting trend but a crucial business model. The strategy is also vital for revitalising prime city areas, according to market experts.
Gareth Michael Powell, head of Cushman & Wakefield Thailand, stressed the importance of this shift, suggesting that Public-Private Partnerships (PPP) should prioritise development in the hospitality and logistics sectors to fuel national growth.
He specifically highlighted the potential of mixed-use resorts and wellness hubs to create multiple revenue streams from experiential tourism.
Retail Reimagined as 'Lifestyle Hubs'
The retail component within these new projects is particularly important for liquidity and long-term value.
Norasak Suphakorntanakit, head of Capital Markets and Investment at Cushman & Wakefield Thailand, noted that the retail sector remains a star performer, aligning with new-generation consumers who prioritise shopping experiences.
"New-era retail projects must move beyond being mere sales spaces to become 'lifestyle centres' that reflect consumer tastes and strongly attract tourists," Norasak stated, adding that fusing retail and hotel elements clearly enhances a project’s long-term value.
This is driving developers to seek strategic joint-venture partners to ensure their large projects meet high standards of design and sustainability.
The CBD Office Market Disruption
The most noticeable impact of this mixed-use boom is the pressure it places on the existing Bangkok office market.
Ukrit Pornpattanapairoj, head of Office Leasing at Cushman & Wakefield Thailand, reported that Bangkok’s total office stock is approximately 8.93 million square metres.
The market faces a major influx, with an additional 654,000 square metres completing between 2025 and 2027, over half of which is in the Central Business District (CBD).
One Bangkok is leading the charge, setting a new market standard. Its leasing progress is remarkable, with Tower 4 achieving 80-85% occupancy.
Notably, One Bangkok is innovating its leasing policy, partnering with firms like SH Living to offer furniture rental and ready-to-use meeting rooms, which significantly reduces the tenant’s capital expenditure (Capex) and addresses the modern demand for business flexibility.
Another key CBD development, Dusit Central Park, has seen its office space reach 60-65% occupancy. This intense competition is forcing surrounding older buildings to heavily adapt to retain tenants.
"New buildings that exceed 50% occupancy or older buildings that maintain 80%-90% occupancy will see a slight rent increase," Ukrit explained. "But those with occupancy below 50% or who lose major tenants and fall below 70% will have to freeze or reduce rental prices."
Innovation Beyond the City Centre
The competition isn't confined to the CBD. Projects are expanding to new potential areas with differentiated concepts, such as Cloud 11 in the Punnawithi/Udomsuk area. While its office space has attracted less initial interest, its retail component is performing well.
Cloud 11’s innovation lies in its unique business model: converting a portion of the rent into "credit" that tenants can use within the project for services like large LED screen advertising or partner media services.
Looking ahead, Surachet Kongcheep, Head of Research and Consulting at Cushman & Wakefield Thailand, warned that the retail market outlook for the rest of 2025 and 2026 remains subdued. However, office demand could brighten if global and domestic economic conditions improve in 2026.
Ukrit concluded that success in the competitive real estate market is no longer determined solely by project size, but by innovation and tenant-centric services, which are now the heart of modern development.
