Asia Pacific Office Outlook 2024

BANGKOK

K E Y M E S S AG E S

SUPPLY

DEMAND

RENTS

KEY OUTLOOK

 613,957 sqm of new space is currently under construction and due to enter the market from 2024 to 2026.  Of this, 382,957 sqm is expected to enter the market in 2024.

 Tenant demand slowed down in 2023; net absorption is expected to decline to 16,394 sqm in 2023.  Overall office vacancy is expected to rise further, as an influx of new supply enters the market with low to-moderate pre-let commitment levels.  In response to an influx of space, we expect to see office leasing activity remain tenant favourable.

 Rental growth is expected to remain unchanged in 2023 at THB 936 sqm/month.  Beyond this, rents are forecast to grow slowly by 0.5% in 2024, to reach THB 940 sqm/month.

 Further relocations from older office buildings to newer projects are expected to be seen over the coming quarters. Implementing the right workplace sizing strategy is now a priority for businesses.  The Bangkok market broadly has sufficient stock but will need to focus more on quality improvements.  A shift in corporate workplace strategy, the economic cycle and

financial markets will all play an integral role in shaping tenant demand.