Flight-to-quality trend persists as tenants relocate to premium space within submarket

• Bangkok’s prime office stock recorded negative quarterly net absorption of -2,500 sq.m. in Q1 2026. This temporary drop was driven by large-scale occupiers vacating older buildings, offsetting positive take-ups in newly completed assets.
• Tenant activity was concentrated within Central Bangkok submarket, with most activity along Rama IV Road. Intra-submarket relocations reflected continued flight-to-quality behaviour, as occupiers upgraded space within the same submarket.

Vacancy rate exceeds 30% for first time since 2000, following continued large-scale completions

• One Bangkok Tower 5 became fully operational in Q1 2026, adding 99,000 sq.m. to the market. Total prime office stock in the CBA reached 1.76 million sq.m. Prime vacancy reached 31.8% in Q1 2026, exceeding 30% for the first time since 2000.
• New supply remained concentrated in Central Bangkok submarket, while the Central East recorded no new completions since mid-2024.

Premium completions underpin modest average rental growth whilst landlord concessions intensify

• Prime gross rents in Bangkok’s CBA increased to THB 1,023 p.sq.m. per month, up 1.1% q-o-q. Recent premium completions supported the market growth, while most buildings maintained stable or discounted rents to attract occupiers and support occupancy.
• Capital value growth remained limited, with yields holding at 5.6%. Investors remained cautious amidst elevated vacancy levels and moderated leasing momentum.

Outlook: Supply inflows continue to drive high vacancy and intensify landlord competition amid cautious leasing demand

• The Bangkok CBA market is expected to receive an additional 73,000 sq.m. of premium supply from One Bangkok Tower 2 in Q3 2026. With absorption remaining constrained amid economic uncertainty and current leasing conditions, the vacancy rate is expected to remain near 31%.
• Prime rents are forecast to grow by 1.5% y-o-y by end-2026. Incoming premium completions are likely to command above-market face rents, while older assets are expected to continue offering renewal incentives to retain existing tenants.