Bangkok’s office market in Q1 2025 continued to grapple with increasing pressure from new supply, leading to higher vacancy rates and intensified competition among landlords, according to CBRE Thailand. The earthquake in Myanmar on March 28, which was felt throughout Bangkok, added a new dimension to office space decision-making, prompting companies to reassess their priorities amid growing safety concerns.
Despite the ongoing influx of new supply impacting occupancy levels, net take-up during the first quarter remained notably strong, driven by companies relocating into Grade A+ buildings in the CBD and Grade A buildings in both CBD and non-CBD areas. In contrast, the Grade B office segment experienced negative net absorption.
The earthquake’s influence has brought three key factors to the forefront of the Bangkok office market, according to CBRE. First, structural safety has become a top priority for both current and prospective tenants. Maneerat Vichitrattana, CBRE’s senior director of office services, explained, “Existing tenants now prioritize building safety checks to ensure their buildings meet the Bangkok Metropolitan Administration’s standards, allowing them to operate normally.”
Second, effective communication from landlords has become crucial. Post-earthquake, landlords are expected to provide prompt, transparent updates across multiple channels to inform and reassure tenants. Many have set a positive example by utilizing technology—such as building apps, digital displays, social media, and email—to keep tenants updated and confident in their building’s safety responses.
Third, there has been a noticeable shift in tenant preferences and new requirements. Ms. Maneerat noted that some companies seeking new offices are now favoring low-rise buildings or lower floors within high-rise structures. Additionally, some firms are considering relocating from older buildings affected by the earthquake. While some lease transactions proceeded smoothly in the immediate aftermath, others have been delayed as tenants seek reassurances from landlords regarding building safety and service continuity.
Most Bangkok office buildings have demonstrated resilience and structural integrity. However, those landlords who provided timely reassurance and communicated effectively enhanced their properties’ market standing. Conversely, buildings that lacked clear communication and failed to reassure tenants are at higher risk of tenant relocations.
As safety becomes the key measure of quality, the earthquake is expected to accelerate the “flight to quality” trend within Bangkok’s office market. Nicholas Vettewinkel, CBRE’s senior director of consulting and research, observed that this event may compel owners of older properties to adopt new strategies to remain competitive.
