Bangkok prime office vacancy tops 30% for first time since 2000

Prime vacancy was at 31.8% in Q1.

JLL says Bangkok’s prime office vacancy rate exceeded 30% for the first time since 2000 in Q1 2026, as continued large-scale project completions added significant new supply to the market.

According to JLL, One Bangkok Tower 5 became fully operational during the quarter, contributing 99,000 sqm of new space and lifting total prime office stock in Bangkok’s central business area to 1.76 million sqm. Prime vacancy rose to 31.8% in Q1 2026, with most new supply concentrated in the Central Bangkok submarket. The Central East submarket, meanwhile, has recorded no new completions since mid-2024.

The consultancy reported negative net absorption of 2,500 sqm during the quarter, driven by large occupiers vacating older office buildings, which offset positive leasing take-up in newly completed projects.

Tenant activity remained concentrated in Central Bangkok, particularly along Rama IV Road, as occupiers continued relocating to higher-quality office space within the same submarket. JLL said the ongoing flight-to-quality trend reflects tenant preference for premium-grade assets and upgraded workplace environments.

Prime gross rents in Bangkok’s CBD increased 1.1% quarter-on-quarter to THB1,023 per sqm per month, supported by recently completed premium developments. However, most landlords maintained stable or discounted rents and offered additional incentives to attract tenants and support occupancy.

Capital value growth remained limited, with prime yields holding steady at 5.6% as investors remained cautious amid elevated vacancy and softer leasing momentum, according to JLL.

Looking ahead, the consultancy said the market is expected to receive an additional 73,000 sqm of premium office supply from One Bangkok Tower 2 in Q3 2026. With leasing demand remaining cautious amid economic uncertainty, JLL expects vacancy rates to stay near 31% through the near term.

Prime rents are forecast to grow by 1.5% year-on-year by the end of 2026, led by incoming premium developments expected to command above-market rents, while older assets are likely to continue offering renewal incentives to retain tenants.