CBRE Reports Sustained Bangkok Office Market Recovery as 'Flight to Quality' Drives Premium Grade Buildings, Rental Rates Jump 79.3%
Bangkok's office market continues recovering with occupancy rates climbing to 79.3% in Q1 2025, driven by tenants moving to premium-grade buildings in the CBD while older properties face mounting pressure.
On May 25, 2025, CBRE Thailand, the world-renowned real estate advisory firm, released its Q1 2025 Bangkok office market report showing continued market improvement. Overall space occupancy rates have increased to 79.3%, marking the second consecutive quarter of growth. Net take-up in Q1 2025 exceeded 11,000 square meters, bringing the market's consecutive positive net take-up streak to eight quarters.
The "Flight to Quality" trend—where tenants migrate to higher-quality office buildings—continues unabated in Q1, with demand heavily concentrated in Grade A+ buildings in the CBD, while Grade A properties outside the CBD also attract tenants steadily.
No new office space was completed in Q1, and future projections suggest new supply will remain limited, with new office space over the next five years expected to remain lower than the amount that entered the market in 2024 alone.
Rental rates are diverging significantly between premium and standard buildings across all locations. Top-tier buildings continue to command higher rents, while older or less competitive buildings face increasing pressure.
Throughout 2025, many aging office buildings with good potential are scheduled for major renovations, and other buildings may undergo repositioning, renovation, or demolition. These factors will drive increased office relocation demand among tenants.
Rungrat Veerabutkakarn, Managing Director of CBRE Thailand, stated that tenants remain active and are spending more time comparing multiple options before making decisions. Many companies are willing to relocate offices without significantly expanding space if they find higher-quality, better-value options that better meet their employees' workplace needs.
Chotika Tangsiriratkul, Head of Project Development Advisory and Market Research at CBRE Thailand, added that the overall office market is gradually improving. The market currently shows positive net take-up for eight consecutive quarters, while new space entering the market remains relatively low. Older buildings are increasingly adopting new strategies and repositioning themselves, which will trigger a new wave of tenant relocations and widen the gap between strong and ordinary buildings.
CBRE Thailand anticipates that demand for well-equipped office space with market advantages will remain stable, with stronger buildings continuing to outperform the overall market.
