Knight Frank Chartered (Thailand) Co Ltd

Bangkok office market recovery takes shape—but
tenant behaviour is redefining demand

Bangkok, May 2026 – While concerns around future oversupply continue to build, the latest research from Knight Frank Thailand indicates that the Bangkok office market is already undergoing a more fundamental shift. Demand is gradually recovering, but the defining change lies in how tenants are making decisions.

Leasing activity has shown clear improvement, with total take-up reaching approximately 111,000 square metres and net absorption rising to around 70,000 square metres. This has supported a modest increase in overall occupancy, which edged up to 77.6%, marking a second consecutive quarter of improvement.

However, despite this recovery, the market remains highly competitive. Continued inflows of new supply are sustaining tenant-favourable conditions, limiting landlords’ ability to push rents. Average asking rents declined slightly by 0.4% quarter-on-quarter to THB 847 per square metre per month.

More importantly, the current cycle is increasingly defined by a widening performance gap between newer, high-quality office buildings and older stock. While Grade A and recently completed projects continue to attract demand, ageing buildings are facing mounting pressure, reflecting a growing divergence in tenant preferences.

Tenants are no longer expanding for growth alone. Instead, leasing decisions are becoming more selective and strategic, with greater emphasis placed on building quality, workplace experience, and long-term cost efficiency. This shift is reinforcing demand for modern, well-designed spaces, while intensifying competition for older or non-certified assets.

At the same time, the emergence of high-quality office developments outside traditional CBD locations is expanding tenant choice, enabling occupiers to balance cost considerations with workplace standards more effectively.

Looking ahead, the Bangkok office market is expected to remain tenant-driven in the near term, particularly as a significant volume of new supply is scheduled for completion in 2026. While demand is recovering, the pace of market rebalancing is likely to be gradual, as occupiers continue to adopt cautious and selective expansion strategies.

“This cycle is not defined by how much space is being leased, but by how tenants are making decisions,” said Panya Jenkitvatanalert, Partner and Head of Office Strategy, Knight Frank Thailand. “Today’s occupiers are far more selective, evaluating quality, cost efficiency, and long-term suitability. This is widening the gap between high-quality buildings and older stock, and reshaping competition across the entire market.”