BANGKOK, Thailand – Bangkok’s office market showed signs of stabilisation in the third quarter of 2026, but approximately 1.6 million square metres of office space remained vacant, with occupancy still well below the 10-year average, according to Knight Frank Thailand.
Panya Jenkijwattanalert, Partner and Head of Office Advisory at Knight Frank Thailand, said total office supply reached 6.82 million square metres in Q3, up 0.8% from the previous quarter following the completion of AIA Connect, which added 53,500 square metres. Office buildings with green certifications accounted for 3.03 million square metres, or 44% of the market, after certified supply increased 1.8%.
Occupancy remains below the long-term average
Total office take-up reached approximately 109,000 square metres during the quarter, while tenant departures accounted for 59,000 square metres. This resulted in net absorption of about 51,000 square metres, down from 69,000 square metres in Q2.
The overall occupancy rate edged up 0.1 percentage point to 76.4%, while average asking rents remained unchanged at 858 baht per square metre per month. Occupancy was still around seven percentage points below the 10-year average of 83%. The figures highlight the challenge of filling existing vacant space while new developments continue to compete for tenants.
Demand favours new and green-certified buildings
Although the market recorded positive net absorption, demand was concentrated in recently completed projects, including BTS Visionary Park, Cloud 11, One Origin and AIA Connect. Together, these buildings recorded approximately 66,000 square metres of additional occupied space. The rest of the market recorded negative net absorption of around 16,000 square metres, indicating that demand remains uneven across buildings.
Green-certified offices recorded positive net absorption of approximately 66,000 square metres, while buildings without environmental certification recorded negative net absorption of around 15,000 square metres for a second consecutive quarter. However, green credentials have not automatically translated into higher rents. Average asking rents for certified buildings declined 0.3% quarter-on-quarter, reflecting continued competition for tenants.
Grade A offices improve while Grade B faces pressure
Occupancy trends differed by building grade. Grade A offices recorded a 1.6-percentage-point increase to 79%, while Grade B occupancy fell 0.6 percentage point to 73%. Grade C occupancy rose 0.4 percentage point to 80%.
Average asking rents increased slightly across all three grades:
- Grade A: 1,271 baht per square metre per month, up 0.3%.
- Grade B: 869 baht, up 0.7%.
- Grade C: 545 baht, up 0.1%.
With substantial vacant space still available and additional supply approaching, tenants retain considerable bargaining power. Landlords continue to offer incentives, favourable lease terms and fit-out support to attract and retain occupants.
Non-CBD locations lead net absorption
Office locations outside Bangkok’s central business district (Non-CBD) recorded approximately 49,000 square metres of net absorption, compared with only around 2,000 square metres in the CBD. Non-CBD occupancy increased 0.2 percentage point to 78%, while average asking rents rose 0.5% to 699 baht per square metre per month. In the CBD, occupancy remained around 75%, and average asking rents fell 0.4% to 976 baht per square metre per month.
Performance varied between individual locations. Phahonyothin–Vibhavadi occupancy increased 5.1 percentage points to 80%, while Bang Na–Srinakarin rose 3.5 percentage points to 69%.
In the Phetchaburi–Rama 9–Ratchada area, occupancy fell 3.7 percentage points to 78%, partly reflecting the arrival of AIA Connect, which had an initial occupancy rate of 30%.
New supply slows, but competition remains
The projected pipeline of office space expected to enter the market through 2031 has been revised down to approximately 530,000 square metres, around 54% of which is under construction.
About 119,000 square metres of new office space is expected to be completed in Q4 2026, including One Bangkok Tower 2 and Summit Tower. Completion of Boonmitr Silom and Project O has been postponed to later years. After 2026, new completions are expected to average around 82,000 square metres annually through 2031, significantly below the volume entering the market in 2026.
While the slower development pipeline may ease future supply pressure, the existing 1.6 million square metres of vacant space means Bangkok’s office market still faces a substantial absorption challenge. Buildings that fail to match changing tenant requirements are likely to face the greatest difficulty competing for occupancy. (Story, Photo: Positioning Magazine Online)
