Why office demand in Bangkok CBD fell to -26,300sqm in Q1

In contrast, net absorption in non-CBD areas hit 20,800sqm.

According to Knight Frank, in the Bangkok CBD, the average asking rent remained constant at THB 935 per sq m per month, while the average occupancy rate fell by 2.0% QoQ to 78%. 

The Ploenchit-Chidlom-Wireless area demonstrated robust performance, with occupancy growing by 2.7% YoY to 81%. 

Here’s more from Knight Frank:

Meanwhile, recent completions in the Nana-Asoke-Phrompong and Silom-Sathorn-Rama IV areas over the past year pushed rental growth upward by more than 1% YoY, but occupancy rates also plunged by nearly 5% YoY. This quarter, CBD net absorption fell to a negative 26,300 sq m, largely due to a rise in vacated space in ageing office buildings in the Silom-Sathorn-Rama IV area.

Office spaces located outside the CBD experienced a decrease in the average asking rent by 1.2% QoQ, settling at THB 652 per square meter per month. Meanwhile, the average occupancy rate modestly increased by 0.8% QoQ to 75%. 

In contrast to the CBD, non-CBD areas recorded positive net absorption figures of 20,800 sq m in Q1 and a substantial 82,900 sq m over the past year. Each non-CBD sub-market saw a decline in rents both QoQ and YoY, accompanied by an increase in occupancy rates. The Phaholyothin–Viphavadi area emerged as the best performer, with the occupancy rate increasing by 3.8% YoY, buoyed by a healthy net absorption of 20,600 sq m.