Is Bangkok's office market hot right now? Absolutely. But it's hot in the sense that landlords are competing fiercely for tenants. We're in a full-blown Tenant's Market – where tenants hold significant negotiating power.
While vacancy rates dropped slightly in Q3 2025, this doesn't necessarily signal surging demand. Rather, it reflects the continued hesitation of foreign investors to expand, leaving substantial vacant space in the market.
Market Overview: The Numbers That Matter
Aukit Pornpattanaporoj, Head of Office Leasing at Cushman & Wakefield, shares that Bangkok currently has approximately 8.93 million square meters of office space, with half (4.97 million sqm) located in the CBD. Beyond existing inventory, there's another 654,000 square meters under construction, scheduled to launch between 2025-2027.
These new buildings will be split between the CBD and popular areas like outer Sukhumvit, Bangna, and Ratchadapisek. This means competition in the market will only intensify in the near future.
Vacancy Rates: Lower, But Still High
Looking at occupancy, Q3 figures show modest improvement. Vacancy rates dropped to 26.0% from 26.5% in the previous quarter. Demand for Grade A office space continues to grow, particularly for buildings that entered the market in 2024, which have seen steady occupancy increases.
Despite these positive signs, a 26% vacancy rate remains quite high. This indicates the market still has abundant available space, which is why tenants continue to enjoy strong negotiating power.
The Rental War: When Landlords Must Concede
What's particularly interesting is the rental situation. In this highly competitive environment with abundant choices for tenants, landlords have had to adjust their strategies. Average rent for Grade A buildings in the CBD fell from 942 baht/sqm/month to 937 baht/sqm/month.
Price reductions, rate freezes, and special incentives have become primary tactics for retaining existing tenants and attracting new ones. Aukit explains, "Many tenants are relocating from older buildings (10-20 years) to newer properties with better environmental standards and security. The competition is quite intense."
Companies requiring large spaces often receive attractive incentives from landlords, while many tenants demand greater flexibility in lease terms to adapt to business changes.
Older Buildings Renovate: Fighting Back
Buildings over 20 years old aren't passively accepting tenant losses. Many are investing in major renovations to compete with newer properties, including upgrading to international standards like LEED, WELL, and WiredScore, installing turnstiles and smart elevator systems, and modernizing exterior appearances.
Rental strategies vary by building situation:
- Buildings with 50%+ occupancy or retaining 80-90% of tenants can begin gradually raising rents
- Buildings below 50% occupancy or those losing major tenants must freeze or reduce rates
Looking Ahead: What 2026 Holds
Regarding future trends, Aukit analyzes: "Thailand's office market heavily depends on multinational corporations. Economies in the US, Europe, Japan, and China directly impact us." Therefore, the global economic situation remains a key factor determining market direction.
The good news? If 2026 avoids major disruptions and the global economy recovers, the market should improve. Additionally, new supply in 2026 will be limited compared to 2024-2025, which may help rebalance the market.
Cushman & Wakefield: Your Trusted Partner
In a market this complex with abundant choices, finding the right office space requires expertise and experience. This is where we come in.
We're true Tenant Representatives. We don't sell space – we stand 100% on your side to help you find the best space, considering:
- Convenient locations Whether it's employee accessibility, proximity to BTS/MRT, or ease of client access
- Your specific business needs From space requirements to building standards and special amenities
- Optimal budget fit We negotiate to get you the best value, because in a Tenant's Market, you should leverage your negotiating power fully
Our team has deep knowledge of Bangkok's office market, closely monitors market movements, and is ready to present the best options for you.
