Knight Frank Chartered (Thailand) Co Ltd

Office Market Q4 2025

Market Overview

Thailand’s economy expanded in Q4 2025 compared with the previous quarter. On the supply side, activity improved as manufacturing output increased, supported by stronger domestic and external orders as well as the resumption of production at factories that had temporarily shut down for process upgrades. The recovery in manufacturing also lifted related service sectors, particularly those linked to trade and logistics. On the demand side, domestic spending has strengthened. Private consumption rose, partly benefiting from government support measures, while private investment continued to expand. Central government expenditure also increased, providing an additional boost to overall economic momentum. Meanwhile, external demand improved further, with merchandise exports growing across several categories, especially electronics and agricultural products.

In December, the Business Sentiment Index (BSI) remained broadly stable. For 2025 overall, the index edged up slightly, mainly supported by the manufacturing sector following accelerated shipments in the first half of the year ahead of the implementation of U.S. reciprocal tariffs. The three-month expected BSI increased from the previous month to 54.4, driven by stronger sentiment in non-manufacturing, particularly retail trade, amid expectations of the “Half-Half Plus Phase 2” program in early 2026. However, confidence softened somewhat following the dissolution of parliament.

Supply

Total supply of office space for rent in Bangkok remained stable during Q4 2025 at 6.49 million sq m. While no significant new completions were recorded within the quarter, the market still expanded by 2.9% compared with the same period last year, reflecting the 183,000 sq m increase from Q1 to Q3. Subsequently, total supply of green space remained at 2.35 million sq m or approximately 36% of supply.

Future Supply

With several major projects now completed and limited new announcements entering the pipeline, future supply has moderated to around 851,000 sq m. Approximately 68% of this total is currently under construction, providing a relatively clear view of additions that will materialize over the next few years.

2026 is set to be a pivotal year for the Bangkok office market, with approximately 436,000 sq m, or 51% of the remaining pipeline, scheduled for completion. Several projects originally targeted for delivery in Q4 2025 have now been deferred into next year, concentrating new supply into a shorter timeframe. These completions are expected to sustain a competitive leasing environment.

Demand

Leasing remained healthy by historical standards. Take up remained stable from the previous quarter, rising slightly to 102,000 sq m. Meanwhile, net absorption was recorded at 25,000 sq m, supporting a 0.5% QoQ rise in total occupied space to about 5.0 million sq m. The performance gap between green and non-green buildings nevertheless continued to widen. Although non-green space returned to positive net absorption, the gain was modest at around 6,300 sq m. By comparison, green buildings captured 18,500 sq m, underlining the ongoing preference for more sustainable workspaces.

Market Dynamics by Segment

Overall, market occupancy improved modestly, rising by 0.4 % pts QoQ to reach 77%. On an annual basis, occupancy was largely unchanged, indicating that demand growth is currently tracking additions to supply.

Across grades, movements were generally limited but positive. Both Grade A and Grade B occupancy increased by 0.3 % pts QoQ. Grade C experienced the most notable change, with occupancy rising by 0.8 % pts. On an annual basis, Grade A recorded the greatest improvement, with occupancy rising by 1.8% pts, reinforcing the continued flight to quality among occupiers.

Rental trends did not move uniformly across the market. The headline average for Bangkok declined by 0.3% QoQ to THB 850 per sq m per month. Segmented by grade, Grade A rents achieved a modest increase of 0.5% QoQ to THB 1,247, Grade B rents edged up by 0.2% QoQ to THB 865, while Grade C saw a slight decline of 0.5% QoQ to THB 545.

Market Dynamics by Area

The CBD office market posted a decline in rent, with the average asking rent falling 0.4% QoQ to THB 965. The occupancy rate softened slightly to 75%, down 0.4% pts QoQ.

• Ploenchit–Chidlom–Wireless saw rents edge up 0.3% QoQ to THB 1,075, while occupancy slipped 0.5% pts QoQ to 75%.
• Nana–Asoke–Phrom Phong recorded a 1.4% rental decline QoQ to THB 920, though occupancy decreased 0.2% pts QoQ to 79%.
• Silom–Sathorn–Rama IV saw rents dip slightly by 0.1% QoQ to THB 988, while occupancy decreased 0.5% pts QoQ to 75%.

The Non-CBD market recorded a slight rental decrease, with average asking rents down 0.1% QoQ to THB 688, while in contrast, occupancy increased 1.5% pts QoQ to 79%.

• Phetchaburi–Rama IX–Ratchada saw rents decline 0.5% QoQ to THB 731, with occupancy rising 2.0% pts QoQ to 83%.
• Phaholyothin–Viphavadi recorded a 0.5% rental decrease QoQ to THB 719, while occupancy dipped 0.4% pts QoQ to 71%.
• Bangna–Srinagarindra saw rents increase 0.8% QoQ to THB 630, while occupancy improved by a substantial margin, increasing by 5.3% pts QoQ to 76%.

Review & Outlook

Bangkok’s office market continues to operate in a competitive environment. Even so, the latest figures suggest that the market is starting to stabilize, with demand keeping pace with supply over the past year. On an annual basis, both the CBD and non-CBD expanded, with all sub-markets except for Nana–Asoke–Phrom Phong recording positive net absorption.

Market enquiry continues to favor high-quality buildings, especially those with modern specifications and recognized environmental credentials. In contrast, older and non-certified properties face longer vacancies and greater reliance on pricing flexibility and incentives to secure commitments. The divergence in performance between asset types therefore remains a defining feature of the market.

Looking forward, the reduction in the future supply pipeline compared with previous years may gradually ease pressure on fundamentals. However, in the short term, occupiers retain a broad range of options and are likely to continue leveraging this position to secure favorable packages, especially in 2026 where approximately 436,000 sq m of new space is projected to enter the market.

Panya Jenkitvathanalert, partner - head of office strategy and solutions, commented: “The Bangkok office market in Q4 2025 reflects a gradual stabilisation in overall fundamentals, with demand keeping pace with the supply introduced earlier in the year. However, market performance is becoming increasingly differentiated by location and asset quality.

We are observing stronger leasing momentum in decentralised districts and continued resilience in Grade A and green-certified buildings, while older or non-certified stock remains under greater competitive pressure.

Looking ahead, the concentration of new supply scheduled for 2026 will be a key factor shaping market dynamics. Although the reduction in future pipeline compared to previous years may help ease longer-term pressure, the near-term environment is likely to remain highly competitive, with occupiers continuing to benefit from greater choice and negotiation flexibility.”