Photo courtesy of [source]

 

Occupancy rates in Bangkok’s office market fell to 79.3% in Q2 2025, marking the first time since 2004 that it dropped below 80%, as new Grade A properties drew tenants from older buildings. CBRE Thailand highlighted that this decline, prompted by an influx of new space, is reshaping the market dynamics. New developments like One Bangkok Tower 5 and Central Park Offices added approximately 145,814 square meters to the market.

 

The last similar dip occurred in 2004, but unlike then, this drop is fueled by competitive new offerings, rather than a recovering demand. This trend led to decreased occupancy in older buildings, pushing landlords to consider rent cuts, renovations, or repurposing to retain tenants. With tenants seeking modern amenities in newer Grade A+ buildings, this shift is evident in high demand for properties with transit links and sustainable features.

 

Net take-up in Q2 2025 remained positive at 36,825 square meters, mainly due to relocations to non-CBD Grade A buildings. This trend was driven by sectors like insurance, logistics, and conglomerates. Many companies favor these relocations to capitalize on quality features and lower rental costs, reshaping occupancy rates and boosting non-CBD areas to over 71%.

 

Older Grade B buildings saw negative take-up as tenants downsized or moved to newer properties. Some space has been transitioned to alternative uses, with roughly 26,720 square meters converted to hotels or slated for new purposes. Landlords face critical decisions on whether to invest in upgrades or repurpose older assets altogether.

 

Looking ahead, CBRE expects a net take-up increase of 10-15% in 2025, though concentrated in new Grade A developments. Older buildings may continue to lose tenants unless effectively repositioned, as the market increasingly values quality and adaptability. Strategies like flexible leasing and modern amenities are becoming essential tools for landlords to attract and retain tenants.

 

Key Takeaways

• Occupancy in Bangkok's office market fell below 80% for the first time since 2004.
• New Grade A and A+ buildings are drawing tenants, impacting older property demand.
• Landlords are cutting rents and renovating to retain tenants amid rising competition.

 

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  Adapted by ASEAN Now from Bangkok Post 2025-09-12

 

 

Best get the rent increases in place to make up the shortfall, maybe add a bit on for a rainy day then,

I can understand having an office as point of contact 

30 years ago massive call centres but times have changed & can work from home still being monitored by the company - SE Asia a nightmare traffic wise (mostly) which adds hours onto your day before & after work 

Certain businesses need an office depending on the business