Premium relocations fuel absorption as the flight-to-quality trend persists in Q4 2025 and landlords stabilise rents

• Net absorption decelerated to nearly 12,000 sqm in Q4 2025. Most activity involved large MNC occupiers relocating to new premium completions, including Central Park Offices and One Bangkok Tower 3.
• Refurbished projects recorded healthy take-up, as cost-conscious SMEs chose upgraded buildings in prime locations, while landlords normalised rental rates and reduced rent-free periods across the broader market.

Vacancy rates improve as prime office supply remains flat, owing to deferred project openings in Q4 2025

• No new prime office projects were completed in Bangkok’s CBA during Q4 2025, with total supply remaining at 1.66 million sqm. Developers postponed openings to H1 2026, reflecting subdued market sentiment and a strategic focus on demand recovery.
• The supply pause resulted in vacancy improving to 27.6% (-71 bps q-o-q), the lowest since Q2 2024. Prime projects benefited from quality upgrades and the sustained flight-to-quality trend, yet tenants remained cautious.

CBA prime office yields increase as rents grow whilst incentives narrow, and capital values remain stable in Q4 2025

• Prime gross rents in Bangkok’s CBA rose 0.6% q-o-q to THB 1,012 per sqm per month, driven by reduced incentives and stable supply. Landlords shortened rent-free periods to 1.8 months per three-year contract term, pushing net effective rents up by 0.8% q-o-q.
• Capital values for CBA prime-grade offices remained flat, reflecting investor caution, as there were no new transaction activities. Market yields rose marginally to 5.6%.

Outlook: New premium supply to drive CBA prime vacancy as rents stabilise and capital values grow modestly

• The anticipated delivery of 172,000 sqm of new premium supply will elevate CBA Grade A inventory to 1.84 million sqm in 2026, driving vacancy to a record 30% and creating a tenant-favoured market with enhanced options and intensified landlord competition.
• Prime rents are forecast to grow to THB 1,025 per sqm per month, or by 0.6% q-o-q, held in check by competitive pricing of older and new assets amid ongoing flight-to-quality. Capital values may rise moderately, by up to 1% y-o-y.