Bangkok’s Office Market Hits Tipping Point as Major Tenants Seize Control
Colliers reports a surge in office supply to 10.47M sqm as occupancy rates dip, leaving landlords of older buildings scrambling to avoid obsolescence
- A significant oversupply of office space in Bangkok has created a "tenant's market," giving major corporations unprecedented bargaining power over landlords.
- Tenants are leveraging their control to demand better lease terms, premium facilities, and are often "rightsizing" by reducing their total floor area to accommodate hybrid work models.
- Owners of older buildings (15+ years) are now forced to modernize with lifestyle amenities and expensive eco-friendly retrofitting to meet tenants' non-negotiable ESG standards and avoid obsolescence.
- Despite the market-wide oversupply, new "Grade A" developments in prime locations like the Rama IV corridor continue to attract high-value tenants, intensifying the pressure on older properties.
Colliers reports a surge in office supply to 10.47M sqm as occupancy rates dip, leaving landlords of older buildings scrambling to avoid obsolescence.
The Bangkok office sector has firmly shifted into a "tenant’s market", with major corporations wielding unprecedented bargaining power as a wave of new supply outpaces demand.
According to the latest data from Colliers Thailand, landlords are now facing a stark ultimatum: modernise or face permanent vacancy.
Phattarachai Taweewong, director of Research and Communications at Colliers Thailand, reported that by the final quarter of 2025, cumulative office supply reached 10.478 million square metres.
This represents a 1.79% expansion in stock, yet the average occupancy rate has slid to 86.13%.
The figures suggest that despite continued interest from the e-commerce and financial sectors, the influx of new "Grade A" buildings is not being met with equivalent absorption.
Tenant behaviour has undergone a fundamental shift, with companies now demanding premium facilities at significantly lower price points.
Major tenants are no longer simply renewing leases; they are using their sheer scale to squeeze landlords for more favourable terms.
A growing trend of "Rightsizing" has also emerged, where firms renew their contracts but drastically reduce their total floor area to accommodate hybrid working models and reduce overheads.
This has left owners of older buildings—those aged 15 years or more—in a precarious position.
"It is no longer just a battle over price," the report suggests. "It is a battle for survival."
To remain competitive, owners of ageing stock are pivoting towards "Lifestyle Integration".
This includes converting underutilised areas into rooftop bars and communal hubs to promote work-life balance.
Crucially, ESG (Environmental, Social, and Governance) standards have become a non-negotiable requirement.
Corporations are increasingly shunning buildings that lack "Green Building" certification, forcing older developments to undergo costly eco-friendly retrofitting to stay on the shortlist of international firms.
Despite the oversupply, the Rama IV and Lumpini corridors continue to outperform the wider market.
This area has solidified its status as Bangkok’s "New CBD", largely due to massive mixed-use investments.
The crown jewel of this transformation is the One Bangkok mega-project, a 120-billion-baht development by tycoon Charoen Sirivadhanabhakdi.
Along with The PARQ and the newly renovated Queen Sirikit National Convention Centre, this cluster has created a high-density hub of Grade A space that remains the primary target for high-value tenants, even as the rest of the market cools.
