Bangkok to add 540,000sqm of new office space in 2025

This is the largest influx in the near term.

According to a Knight Frank report, throughout 2024, Bangkok’s office market saw an increase of 235,000 sq m in total supply—mirroring the pace of the previous year—while adjustments in future project sizes have reduced the pipeline to 1.0 million sq m.

Leasing activity continued robustly as net absorption remained healthy at 48,000 sq m, resulting in a 1% rise in occupied space to 4.86 million sq m.

Here’s more from Knight Frank:

Notably, green-certified buildings attracted a substantial portion of demand, with net absorption of 50,000 sq m, compared to a marginal decline for non-green properties. Both CBD and non-CBD areas demonstrated positive momentum, recording net absorptions of 27,000 sq m and 22,000 sq m, respectively.

The market is poised for a dynamic phase as supply pressures remain strong and demand evolves. With an anticipated addition of 540,000 sq m in 2025—the largest influx projected in the near term—landlords will need to strategically position their assets to maintain competitiveness.

Grade A properties are expected to capitalize on their premium status, driven by continued tenant preference for high-quality, amenity-rich environments that also incorporate advanced digital infrastructure.

For owners of older properties, deciding whether to renovate or repurpose their assets, as well as determining the extent of intervention needed, will become increasingly critical. The cost of upgrading will vary based on building characteristics, location, size, required interventions, and available amenities, making an asset-specific evaluation important.

Panya Jenkitvathanalert, partner - head of office strategy and solutions at Knight Frank, emphasized “Office buildings across all grades are currently undergoing improvements. While Grade A buildings are already fully equipped with comprehensive facilities, Grade B and Grade C buildings should prioritize retrofitting and refurbishment to enhance their competitiveness, retain existing tenants, and attract new occupants.”

A key trend gaining traction is the return to traditional office setups. Some businesses are reversing previous remote work policies by increasing the number of days employees are required to be in the office or even reverting entirely to on-site work. This shift is gaining momentum, with employees responding positively to the structured environment and the social and collaborative benefits of a physical workspace. Although fewer companies in Thailand mandate office returns compared to broader APAC trends, those that do face lower turnover and higher acceptance, indicating a robust, albeit selective, re-commitment to conventional office models.