Office Market Under Pressure

Amid a sluggish economy and an unprecedented influx of new office spaces, Bangkok's real estate sector is undergoing a significant transformation. The focus has shifted from mere rental rates to the efficiency and sustainability of building management.

Supply and Demand Imbalance

The first quarter of 2025 witnessed a dramatic increase in office supply, adding 524,000 sqm to the market, totaling 6.314 million sqm. This surge has led to a scenario where demand struggles to keep up with supply.

Green Buildings Lead the Way

Tenants are increasingly prioritizing sustainability, with green-certified buildings seeing a notable rise in demand. This shift underscores the changing priorities in the office leasing market.

Economic Challenges Ahead

With Thailand's economy expected to grow by only 2% in 2025, businesses are reevaluating their expansion plans, seeking offices that offer more than just competitive pricing.

Safety Concerns Rise

Recent events have heightened tenant concerns over building safety, making modern, well-managed buildings more attractive despite higher rental costs.

The Road Ahead

The remainder of 2025 poses critical challenges for building owners, as the market demands adaptability, sustainability, and a focus on tenant needs over traditional leasing strategies.