Bangkok to see 524,000sqm of new office supply this year

It is an unprecedented volume of new supply for the city.

According to a Knight Frank report, Bangkok’s total office supply rose to 6.314 million sq m in Q1 2025 following the completion of WorkLab on Rama 4 Road, while green-certified stock expanded to 2.1 million sq m, representing 33% of current supply.

“Net absorption reached 31,000 sq m, lifting total occupied space by 1% to 4.89 million sq m, with green buildings driving demand.”

Here’s more from Knight Frank:

The overall occupancy rate improved by 0.5 percentage points to 77.5%, supported by gains across all grades, especially Grade A, which rebounded by 2.1 points. Market-wide rents edged up 0.3% QoQ, with a new high in Grade A rents at THB 1,248 per sq m per month.

2025 is expected to be a pivotal year for Bangkok’s office market, as an unprecedented 524,000 sq m of new supply is still set to enter the remaining 3 quarters provided no further delays occur. While Grade A properties remain best positioned to capture demand thanks to their modern specifications and sustainability credentials, rising competition will test all asset classes. Owners of aging buildings face increasing urgency to upgrade or reposition, as tenants grow more discerning about value, functionality, and long-term suitability.

Recent events have further sharpened tenant expectations. In the wake of the Myanmar earthquake on 28 March, many occupiers are placing greater emphasis on building safety and emergency preparedness. Although newer buildings command higher rents, the operational disruptions in older buildings—including lift outages, urgent repairs, and structural assessments—have had a direct impact on business continuity. This has pushed tenants to look beyond rent alone, weighing how landlords handle crises and day-to-day maintenance.

In this context, landlord performance has emerged as a key differentiator: some owners have been proactive, communicative, and supportive, while others have offered minimal engagement or delayed responses, reinforcing the importance of strong tenant-landlord relationships in real estate decisions.

Additionally, the return of Trump-era tariffs raises uncertainty for export-driven and multinational occupiers. These firms may adopt more cautious leasing strategies, slowing expansion plans and focusing on cost containment and flexibility.

Combined, these factors suggest landlords will need to adapt quickly—not only through competitive pricing and features, but also by proving reliability, resilience, and responsive service in a more risk-sensitive leasing environment.