Bangkok office tenants put value ahead of CBD prestige

Bangkok office tenants are increasingly looking beyond the prestige of a central business district address and judging buildings by the value they offer, as asking rents and occupancy move in different directions across several of the capital’s main office locations.

Knight Frank Thailand’s figures for the second quarter of 2026 show that higher asking rents no longer necessarily indicate stronger leasing demand. Some locations gained occupants after rents declined, while others recorded higher rents alongside falling occupancy.

Petchburi–Rama IX–Ratchada, a non-CBD location, recorded the highest occupancy rate among the surveyed areas at 82%, despite a quarterly decline. Nana–Asoke–Phrom Phong followed at 80% after average asking rent fell.

Bangna–Srinagarindra moved in the opposite direction. Its average asking rent posted the strongest increase among the locations covered, but its occupancy rate recorded the steepest fall.

The mixed results suggest that Bangkok’s office market is not undergoing a straightforward shift from the CBD to non-CBD districts. Instead, occupiers appear to be comparing rent, accessibility, building quality, flexibility and employee convenience before committing to space.

CBD rents remain high as performance fragments

The CBD remained Bangkok’s most expensive office market, with average asking rent rising 0.7% from the previous quarter to 977 baht per square metre per month.

Occupancy, however, fell by 0.6 percentage point, showing that higher average rents did not translate into stronger demand across the entire CBD market.

Performance also varied considerably between the three selected CBD submarkets. Ploenchit–Chidlom–Wireless recorded increases in both rent and occupancy, Nana–Asoke–Phrom Phong gained occupancy after rents fell, while Silom–Sathorn–Rama IV posted higher rents alongside weaker occupancy.

Ploenchit–Chidlom–Wireless delivered the most balanced CBD performance. Average asking rent rose 0.3% quarter on quarter to 1,075 baht per sq m per month, while occupancy increased by 0.3 percentage point to 75%.

The figures indicate that tenants remain willing to pay a premium when a central location is combined with suitable building quality, convenient travel and access to mass-transit services.

The district’s proposition extends beyond office space itself. Accessibility, convenience and corporate positioning remain relevant to employers seeking offices that employees can reach easily.

Lower rents support Nana–Asoke–Phrom Phong

Nana–Asoke–Phrom Phong recorded a 1.1% quarterly decline in average asking rent to 898 baht per sq m per month.

Occupancy moved in the opposite direction, increasing by 0.7 percentage point to 80%, one of the highest rates among the CBD locations covered.

The result suggests that competitive pricing can help landlords retain existing occupiers and attract new tenants. Buildings that can reduce costs while maintaining their location, facilities and overall quality may be better placed to compete in a market where tenants have a wider selection of space.

Silom–Sathorn–Rama IV presented a contrasting picture. Average asking rent rose 3.0% from the previous quarter to 1,018 baht per sq m per month, but occupancy fell by 1.4 percentage points to 74%.

The figures show that an increase in average asking rent does not necessarily mean that tenants are competing for space. Higher quoted rents can coexist with rising vacancies, particularly when occupiers have greater bargaining power.

The district also illustrates the difference between the rent landlords seek and the price tenants are prepared to accept. In such conditions, changes in occupancy may provide a clearer measure of leasing demand than asking rents alone.

Non-CBD districts compete on more than price

Average asking rent across the non-CBD market increased by 3.0% quarter on quarter to 693 baht per sq m per month.

Occupancy nevertheless fell by 2.2 percentage points to 78%, showing that lower rents than the CBD are not enough on their own to guarantee stronger performance.

Non-CBD office buildings are increasingly competing through accessibility, building quality, the availability and condition of space, and the overall value offered to occupiers.

Petchburi–Rama IX–Ratchada recorded a 0.4% fall in average asking rent to 728 baht per sq m per month. Its occupancy rate declined by 1.6 percentage points but remained at 82%, the highest among all six surveyed locations.

The district offers substantially lower asking rents than the CBD while retaining connections to central Bangkok. This gives it a clear proposition for companies seeking to control office costs without moving too far from the capital’s principal business areas.

Its performance suggests that some tenants are prioritising the location offering the strongest balance of price and connectivity rather than automatically selecting the most central address.

Phaholyothin–Viphavadi recorded more gradual growth. Average asking rent increased by 0.9% from the previous quarter to 723 baht per sq m per month, while occupancy edged up by 0.3 percentage point to 75%.

Although both changes were modest, the simultaneous increase in rent and occupancy indicates that the location retained demand without requiring a substantial reduction in asking prices.

Bangna records the widest rent-occupancy split

Bangna–Srinagarindra produced the sharpest divergence between rent and occupancy among the surveyed locations.

Average asking rent jumped 8.4% quarter on quarter to 688 baht per sq m per month, but occupancy dropped by 9.3 percentage points to 67%, the lowest rate among the areas covered.

The figures demonstrate why rising average rent cannot automatically be treated as evidence of stronger tenant demand.

Changes in the composition of supply can push the average upwards. For example, the addition of newer buildings with higher asking rents can raise the market average even when the amount of vacant space also increases.

Bangkok’s latest office figures therefore do not point to the decline of the CBD or an outright victory for non-CBD locations. Prime addresses can still perform strongly when they offer quality and convenient transport, while lower-cost areas do not succeed on price alone.

Tenants are increasingly assessing the complete office proposition, including accessibility, building standards, flexibility, operating costs and the workplace experience offered to employees.

Bangna–Srinagarindra provided the clearest warning against reading rental growth in isolation: its 8.4% rise in average asking rent coincided with a 9.3-percentage-point fall in occupancy to 67%.

Source: Bangkokbiznews