Knight Frank Chartered (Thailand) Co Ltd

Bangkok Braces for 436,000 sq m Office Surge in 2026

Bangkok’s office market ended 2025 on a note of stabilisation—but 2026 is shaping up to be a defining stress test.

In Q4 2025, total office supply stood at 6.49 million sq m, unchanged quarter-on-quarter, while occupied space rose to 5.0 million sq m. This pushed overall occupancy up to 77%, improving by 0.4 percentage points from the previous quarter

Net absorption reached approximately 25,000 sq m in Q4, and take-up remained healthy at just over 102,000 sq m, reflecting steady leasing activity. Meanwhile, green-certified buildings—now representing roughly 36% of total supply—continue to outperform non-green stock in net absorption

However, the near-term outlook introduces a major inflection point. Approximately 851,000 sq m remains in the active development pipeline, and 436,000 sq m—more than half of that total—is scheduled for completion in 2026 alone

This compressed delivery timeline could significantly intensify leasing competition across both CBD and non-CBD markets.

The impact is likely to be uneven. Grade A buildings continue to show resilience, with rents rising 0.5% QoQ to THB 1,247 per sq m per month, even as the market-wide average rent declined 0.3% to THB 850

The key question for 2026 is whether demand growth can keep pace with the influx of new supply. While Thailand’s broader economic activity improved in late 2025, the office sector remains highly competitive, with tenants leveraging abundant choice to negotiate incentives and flexible terms.

For listed developers, REIT managers, and institutional investors, 2026 will test asset positioning strategies and pricing discipline. For occupiers, it may represent a rare opportunity to secure premium, ESG-aligned space before market conditions potentially rebalance.

Panya Jenkitvathanalert, partner - head of office strategy and solutions, commented: “The Bangkok office market is clearly moving toward greater stability, with demand gradually aligning with supply. However, 2026 will be a pivotal year. The volume of new completions scheduled within a short timeframe will intensify competition across most submarkets.

We expect landlords to focus more aggressively on differentiation—particularly through building specifications, ESG positioning, and incentive packages. While prime and green-certified assets should remain relatively resilient, secondary buildings may face longer vacancy periods unless repositioning strategies are implemented.

For occupiers, this environment presents a strategic window. Companies planning relocations or lease renewals in the next 12 to 24 months are likely to find increased flexibility in negotiations, especially as new projects compete for anchor tenants.”