Knight Frank Chartered (Thailand) Co Ltd

Office Market Q3 2025

Market Overview

The Thai economy softened in Q3 2025 compared to the previous quarter. On the supply side, activity slowed as manufacturing output declined, partly due to temporary production halts in certain industries, which also weighed on related service sectors. On the demand side, domestic spending moderated, particularly in private investment, while foreign tourism receipts also fell. In contrast, merchandise exports improved, supported by strong performance in the electronics sector. Export values, however, declined following the front-loading of shipments to the U.S. during the grace period before reciprocal tariffs were imposed in the previous quarter.

Looking ahead, business sentiment for Q4 2025 is expected to remain broadly stable from the same period last year, with most surveyed firms anticipating that government stimulus measures will help support overall spending and consumer confidence.

Meanwhile, the Business Sentiment Index (BSI) declined from the previous quarter, mainly due to weaker manufacturing confidence in export-oriented food and beverage industries following earlier export surges and the impact of Reciprocal tariffs. The non-manufacturing index rose slightly on support from the “Half-Half” tourism scheme but remained below 50. The three-month expected BSI increased slightly, driven by stronger tourism and retail sentiment with the upcoming high tourism season, while manufacturing confidence softened further amid weak domestic demand and export pressures.

Supply

Total supply of office space for rent in Bangkok increased by 1.0% QoQ to reach 6.49 million sq m following the completion of Central Park Offices, which added 63,000 sq m of new space to the market. Subsequently, total supply of green space grew by 2.8% to 2.35 million sq m, as the project is certified LEED Gold.

Future Supply

Following the completion of Central Park Offices and no new projects announced, future supply pipeline has declined to 867,000 sq m. Approximately 600,000 sq m is currently under construction, representing 69% of future supply. Within Q4 2025, another 6 non-CBD projects are expected to enter the market, which will add another 187,000 sq m of office supply.

Demand

Take up eased from the exceptionally high levels of the previous quarter to 96,000 sq m, broadly in line with levels in Q4 2024 and Q1 2025. Net absorption totaled 37,000 sq m, driving a 1% increase in total occupied space to 4.97 million sq m. The performance gap between green and non-green buildings continued to widen, with green buildings recording 55,000 sq m of net absorption, while non-green spaces contracted by 18,000 sq m.

Market Dynamics by Segment

Overall, the market occupancy rate declined slightly, falling by 0.2% pts QoQ to 76.6%. The Grade A and Grade B segments saw minimal changes, with occupancy at 77.1% and 74.1%, respectively. Meanwhile, occupancy in Grade C fell by 0.5% pts to 80.1%, although it remains the best performing segment.

Despite pressures on occupancies, asking rents continued to rise overall. The market average asking rent rose to THB 853 per sq m per month with Central Park Offices having increased early bird prices from THB 1,400 to THB 1,500 upon the project’s completion. Average asking rents increased by around 1% QoQ for Grade A and Grade C segments, rising to THB 1,241 and THB 547 respectively. Meanwhile, Grade B rents remained relatively flat, falling slightly by 0.3% to THB 863.

Market Dynamics by Area

The CBD office market posted a modest rental increase, with the average asking rent rising 0.8% QoQ to THB 968 per sq m per month. The occupancy rate softened slightly to 76%, down 0.5% pts QoQ.

• Ploenchit–Chidlom–Wireless saw rents edge down 0.2% to THB 1,072, while occupancy slipped 0.2% pts to 75%.
• Nana–Asoke–Phrompong recorded a 0.8% rental increase to THB 933, though occupancy declined 1.4% pts to 79%.
• Silom–Sathorn–Rama IV saw rents climb 1.9% to THB 990, while occupancy increased by 0.1% pts to 75%.

The Non-CBD market also recorded mild rental growth, with average asking rents up 0.3% QoQ to THB 691 per sq m per month, while occupancy was unchanged at 78%.

• Petchburi–Rama IX–Ratchada saw rents increase 0.7% to THB 735, with occupancy improving 0.1% pts to 81%.
• Phaholyothin–Viphavadi recorded a slight 0.1% rent increase to THB 723, while occupancy dipped 0.1% pts to 72%.
• Bangna–Srinakarin remained stable in rents at THB 624, with occupancy rising 0.5% pts to 71%.

Review & Outlook

In Q3 2025, Bangkok’s office market continued to experience intensifying competition for tenants amid a softening economic environment. Despite this, leading developments such as One Bangkok and Central Park Offices continued to attract a healthy number of occupiers, reaffirming the flight to quality among corporates seeking well-managed, future-ready workplaces. Leasing decisions increasingly reflect not only cost considerations but also strategic priorities, as many businesses now view the workplace as an important driver of employee productivity, engagement, and talent retention.

Sustainability mandates are also having a stronger influence on tenant preferences, particularly among multinational corporations. Tenants are seeking buildings that align with global sustainability commitments, including energy efficiency, environmental certification, and wellness-focused features. This commitment is widening the performance gap between green and non-green spaces.

At the same time, cost consciousness is rising as companies prepare for potential economic headwinds. Many tenants are taking advantage of the current tenant-favorable market to upgrade or relocate while attractive leasing terms remain available, a window that may narrow over the next few years as the new supply pipeline gradually declines. Several firms are managing relocation costs by optimizing workspace design, adopting more efficient layouts and flexible seating plans that allow them to occupy smaller areas without compromising productivity or collaboration.

Beyond physical space, the office market is increasingly defined by service quality and tenant experience. With more high-quality projects now available, the differentiating factor has become the hospitality mindset of landlords. Leading buildings are investing in dedicated tenant engagement teams, community-building initiatives, and proactive management practices that enhance daily satisfaction and foster long-term relationships. These service-driven approaches are emerging as key success factors, ensuring that well-positioned assets continue to perform strongly even as broader market conditions become more challenging.

Panya Jenkitvathanalert, partner - head of office strategy and solutions, commented: “As high-quality developments enter the market, the competitive edge is no longer just about the physical asset. Service quality and tenant experience are becoming decisive factors. Landlords that adopt a hospitality-driven approach—supported by proactive management and community engagement—are best positioned to secure and retain long-term occupiers.”