Bangkok Office 2025: Vacancy High, Supply Quality Rising—How Tenants Can Exploit the Window

Bangkok's office market continues to present a promising landscape for tenants in 2025. With a growing supply of Grade A office spaces, the balance of power has shifted in favor of tenants. The current vacancy rate in prime CBD areas sits around 26%, indicating an oversupply relative to demand. Understanding this dynamic can empower tenants to make strategic decisions that leverage current market conditions to their advantage.

The Current Market Landscape

According to Cushman & Wakefield's Q3-2025 MarketBeat report, the vacancy rate for Grade A office spaces in Bangkok's CBD is approximately 26%. This high vacancy rate stems from new premium stock outpacing tenant demand. The average gross rents for prime office space hover around THB 937 per square meter per month. Landlords have begun trimming headline rents to retain existing anchor tenants while also enticing new relocations with various incentives.

Modern office buildings in Bangkok showcasing the high vacancy in the market.

Looking ahead, C&W forecasts about 655,000 square meters of new office supply set to enter the market between 2025 and 2027. About 50% of this new supply is located in the CBD, suggesting ongoing competition for tenants. As landlords raise the quality of their offerings, the overall market remains favorable for those looking to lease canny office spaces.

Flight-to-Quality Trend

Knight Frank's Q3-2025 snapshot reinforces the flight-to-quality trend that is currently gaining traction. The completion of Central Park Offices has enriched Bangkok's green-certified office stock, which now totals around 2.35 million square meters. However, despite the influx of high-quality spaces, overall occupancy remains subdued at around 76.6%. This discrepancy is due to a modest net absorption rate of approximately 37,000 square meters, further solidifying the preference for premium office spaces over older buildings.

Central Park Offices showcasing modern architecture and green certifications.

Tenants are increasingly opting for newer, high-quality buildings that offer better amenities, employee-centric features, and sustainability certifications. This trend is not only beneficial for the environment but also improves employee satisfaction and productivity, making a compelling case for companies to seek these premium offerings.

Supply and Demand Dynamics

Colliers' Q1-2025 review highlights additional market dynamics with the total stock of office space remaining relatively flat at around 10.25 million square meters. Some projects are experiencing delays, contributing to a slight dip in occupancy to 87% across the broader market. This scenario indicates that while premium properties are in demand, the market still faces challenges from an oversupply of less desirable spaces.

Modern office reception area that reflects rising quality standards in office supply.

Landlords, faced with this pressing vacancy situation, are increasingly leaning on incentives to attract tenants. Such incentives often manifest as rent reductions, flexible lease terms, or additional amenities. Companies can take advantage of this situation by negotiating better terms that align with their business goals and employee needs.

The Influence of Mixed-Use Developments

In context with the retail sector, CBRE's 2025 outlook notes a vibrant pipeline of mixed-use developments, particularly in downtown Bangkok. Enclosed malls and retail spaces are being designed with high-spend segments and tourist traffic in mind. As office spaces become part of these mixed-use ecosystems, the commuter experience can be significantly enhanced—offering convenient access to cafes, shops, and leisure activities that contribute to a more holistic work-life environment.

For tenants, this interplay between high-quality office spaces and retail offerings can lead to increased employee satisfaction and recruitment advantages. Such developments are vital for companies looking to create an appealing workplace that draws in top talent.

What To Watch in the Coming Months

As we approach the end of 2025, several trends will influence the office leasing landscape:

1. Q4 Leasing Momentum: Newly completed premium towers, such as the Central Park Offices, will likely see a surge in leasing activity as companies seek to relocate or upgrade their offices before the end of the year.

   
   

2. Green Certification Trends: The adoption of green standards like LEED and TREES is expected to grow, influencing tenant preferences. Spaces that meet these guidelines may not only attract environmentally-conscious businesses but also command a premium in the rental market.

   
   

Both of these trends offer tenants the chance to make informed decisions moving forward.

Actionable Steps for Tenants

To navigate this advantageous market effectively, tenants should consider the following actionable strategies:

• Run a Two-Option Scenario: Before making any major decisions, tenants should conduct a comprehensive analysis comparing the total occupancy cost of staying versus relocating. This scenario should include all associated costs—rent, service fees, fit-out costs, and any incentives—projected over a 5-7 year timeline.

  
  

• Incorporate ESG Factors: Given the evolving importance of sustainability, tenants should also evaluate how well potential office spaces align with their Environmental, Social, and Governance (ESG) goals. The uplift in employee experience tied to green-certified buildings can be a compelling reason to opt for premium spaces.

  
  

• Remain Agile: With the market fluctuating, it's essential to stay informed about competitor leasing trends, evolving rental rates, and any upcoming new developments. This dynamism allows companies to seize opportunities as they arise.

  
  

In leveraging these strategies, tenants can not only secure favorable rental terms but also enhance their corporate image and employee satisfaction in today's competitive environment.

With the right preparation and foresight, 2025 could be a pivotal year for businesses navigating Bangkok's evolving office landscape. Embrace the power in the tenant-favorable market and make informed decisions that can shape the future of your workspace and company culture.