In excess of 1.55 million sq.m. of office space will be entering the market in 2020-2025. This new provision is welcome as demand for accommodation remains high, each year approximately 150,000 - 220,000 sq.m. is required by occupiers.
Despite the short term Covid-19 effects, where some offices need to close and focus on cost saving measures, we still consider the Bangkok office market to be robust, with a healthy outlook. We expect some developers to source new projects to develop, even though supply is increasing in the coming years. We expect the focus to be on higher grade, sustainable office buildings to meet demand.
Within the CBD, the highest supply of office accommodation is in the Lumpini area. The new office buildings are expected to serve the tenants moving from old buildings where the design and fit outs are becoming increasingly dated. The relocations are expected for domestic and international companies, financial institutions, those existing tenants who are looking to expand their spaces and the existing tenants who are looking to move into a better quality office building.
