Bangkok's office market is entering a new phase of competition, with occupiers increasingly prioritising building quality, employee accessibility and value over traditional central business district (CBD) addresses.
Property consultancies Knight Frank Thailand and CBRE Thailand said the market continued to improve in the first quarter of 2026, but the recovery is becoming increasingly uneven between top-performing buildings and older stock.
QUALITY OVER LOCATION
According to Knight Frank Thailand, non-CBD locations recorded significantly stronger net absorption than CBD areas during the first quarter, reflecting a gradual decentralisation of office demand.
The shift does not signal a mass exodus from Bangkok's traditional business districts. Instead, it reflects growing demand for Grade A buildings in decentralised locations that offer comparable quality at lower rental costs.
Over the past few years, a growing number of premium office projects have been completed outside the CBD, providing occupiers with more options as they reassess workplace strategies.
Companies are paying closer attention to employee commuting patterns, finding that some decentralised locations provide easier access and shorter travel times than traditional CBD addresses.
These factors helped non-CBD markets outperform the CBD in occupancy growth, while maintaining relatively stable rental levels.
"The trend is not just a decentralisation of locations, but a decentralisation of quality," said Panya Jenkitvatanalert, partner and head of office strategy at Knight Frank Thailand. "Occupiers now have greater access to high-specification space beyond the CBD without compromising on quality. At the same time, employee accessibility and commuting efficiency are becoming more influential in location decisions."
The findings suggest the traditional advantage held by CBD office buildings is gradually narrowing, as quality office stock becomes available across a wider range of locations.
RECOVERY CONTINUES
A similar trend was highlighted by CBRE Thailand, which reported the market continued to record positive net take-up in the first quarter.
Overall occupancy rose to 79.3%, marking the second consecutive quarterly increase. Net take-up exceeded 11,000 square metres, extending Bangkok's streak of positive net absorption to eight consecutive quarters.
According to CBRE Thailand, the long-running flight to quality trend remains firmly in place, with tenants continuing to seek better office environments despite a cautious economic backdrop.
Demand was strongest for Grade A+ buildings in the CBD, while Grade A projects in non-CBD locations also continued attracting occupiers.
"Occupiers are still active, though they are taking more time to compare options before making a decision," said Roongrat Veeraparkkaroon, managing director of CBRE Thailand. "Many may not be expanding in a big way, but they are willing to relocate if they can get better quality space with good value or a workplace that better suits their people."
PRESSURE ON OLDER STOCK
CBRE noted a widening performance gap is emerging across Bangkok's office market. The strongest buildings continue commanding rental premiums, while older and less competitive properties are facing increasing pressure.
The consultancy expects this trend to accelerate as several ageing office buildings prepare for major renovations this year. Some properties may be repositioned, converted to alternative uses or demolished, creating additional tenant movement across the market.
"The overall picture is gradually improving," said Chotika Tungsirisurp, head of consulting and research at CBRE Thailand. "The market has recorded eight straight quarters of positive net take-up, and the supply pipeline is relatively low."
Older stock will likely go through more repositioning, which should lead to further tenant movement and continue to widen the gap between stronger buildings and the rest of the market, Ms Chotika said.
Unlike previous cycles when competition largely centred on location, both consultancies believe office landlords are now competing on building quality, workplace experience and operational performance. The shift is being reinforced by a relatively limited development pipeline.
According to CBRE Thailand, total new office supply over the next five years is projected to be lower than the amount added to the market in 2025 alone. As a result, well-positioned assets are expected to remain resilient, while older buildings may need substantial investment to remain relevant.
The change suggests Bangkok's office market is evolving beyond location dynamics, with quality the defining factor in occupier decisions.
For landlords, the challenge is no longer merely attracting tenants to a location, but ensuring their buildings can compete in a market where occupiers have more choices than ever before.
