A market survey of office buildings in Bangkok conducted by the research department of CBRE, a global real estate consulting firm, found that in the first quarter of 2018, the rent for Grade A office space in the central business district (CBD) of Bangkok increased by 3.1% compared to the previous year, setting a record for the highest rent ever recorded in history and showing a continuous upward trend.

          The average rent for Grade A office buildings in the CBD is slightly below 1,000 baht per square meter. According to the latest report on the office market in Bangkok by CBRE, Gaysorn Tower has set the record for the highest rent at 1,500 baht per square meter per month. In terms of office space usage during the first quarter of this year, a total of 65,000 square meters was recorded, representing a significant increase of 15.1% year-on-year, primarily due to the completion of self-occupied office buildings, including Krungsri Ploenchit Tower on Ploenchit Road and the new Thai Rath building on Vibhavadi Road. Meanwhile, the overall vacancy rate in the market has decreased to just 7.3%, and it is expected to remain low for the next 3 to 4 years.

          Currently, there are about 750,000 square meters of new office space under construction, including the first phase of the One Bangkok project and The Park, both located on Rama 4 Road, scheduled for completion by 2022. The research department of CBRE predicts that the increasing demand will balance out with the new space coming online in the next three years.

          The direction of the office market in Bangkok from 2022 onwards is somewhat unpredictable, with approximately 2 million square meters of new office space planned for development on several plots of land, which developers have already purchased but have not yet begun construction. The question remains how much office space will be completed each year starting from 2022, and we will only find out when construction begins on the projects as planned by the developers. This year, four foreign co-working space providers will open in Grade A office buildings in the CBD of Bangkok.

          “It’s a global trend that some companies prefer to use co-working spaces rather than signing long-term leases and incurring office decoration costs. Co-working spaces are not only targeted at startups, and co-working space providers will compete with traditional office space landlords,” said Ms. Rungrat Veerapakarn, Director of the Office Space Department at CBRE Thailand.

          Notable new office buildings expected to be completed in 2018 include Singha Complex at Asoke-Phetchaburi intersection with a total area of 60,000 square meters, MS Siam Tower at the corner of Rama 3 Road and Industrial Ring Road with a total area of 40,000 square meters, T-One near Thonglor BTS Station with a total area of 22,000 square meters, Ladprao Hills near Ladprao MRT Station with an area of 6,000 square meters, and Summer Hub near Phra Khanong BTS Station with an area of 5,000 square meters.

Thank you for the information from www.cbre.co.th