Bangkok office leasing activity improves as take-up reaches 111,000 sqm in Q1

This drove the overall occupancy to rise to 77.6% during the quarter.

Bangkok’s office market is undergoing a structural shift as tenants become more selective in their leasing decisions, despite improving demand and ongoing concerns over future oversupply, according to Knight Frank Thailand.

Knight Frank reported that total office take-up in Bangkok reached around 111,000 sq m, while net absorption rose to approximately 70,000 sq m. Overall occupancy increased for a second consecutive quarter to 77.6%, reflecting a gradual recovery in leasing activity.

However, the consultancy said the market remains highly competitive due to continued new supply completions, sustaining tenant-favourable conditions and limiting landlords’ ability to raise rents. Average asking rents declined 0.4% quarter-on-quarter to THB847 per sq m per month.

Knight Frank noted that the market is increasingly characterised by a widening performance gap between newer Grade A office buildings and ageing stock. Recently completed, high-quality projects continue to attract occupier demand, while older and non-certified buildings are facing mounting competitive pressure.

The consultancy said tenants are no longer expanding solely for growth purposes, with leasing decisions now increasingly driven by building quality, workplace experience and long-term operational efficiency. At the same time, the emergence of high-quality office projects outside traditional CBD locations is giving occupiers greater flexibility to balance cost considerations with workplace standards.

Looking ahead, Knight Frank expects Bangkok’s office market to remain tenant-driven in the near term, particularly as a significant volume of new office supply is scheduled for completion in 2026. While demand is recovering, the pace of market rebalancing is expected to remain gradual as occupiers continue to adopt cautious and selective expansion strategies.

“This cycle is not defined by how much space is being leased, but by how tenants are making decisions,” said Panya Jenkitvatanalert, Partner and Head of Office Strategy at Knight Frank Thailand. “Today’s occupiers are far more selective, evaluating quality, cost efficiency, and long-term suitability.”