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The office rental market is expected to remain under pressure in 2026 due to a persistent oversupply that continues to outpace rental demand.

Office building for rent in 2019-2021 continues to expand Driven by the growth of the Thai economy

The office rental business from 2024 to 2026 is expected to improve in line with the recovery of the Thai economy, led by the service sector, resulting in increased demand for office space. In particular, the Green Office segment is becoming increasingly important, as it attracts large corporations and international companies

The market for office rentals will strengthen over 2023 to 2025 on the ending of the Covid-19 pandemic and recovery in the economy, encouraging businesses to take on new hires. This in turn feeding stronger demand for office for at least 0.85 million sq.m., of which is expected to come to market over the next three years.

Depressed conditions have extended from 2020 into 2021 for the office rentals business, and the industry is continuing to battle against the stiff headwinds generated by this year’s severe outbreak of Covid-19 and the impacts of this on the economy. The pressure on costs that this has generated has then forced businesses to trim back on expenses, lay off staff and reduce their office sizes, but in 2022 and 2023, demand is forecast to make its way slowly out of this trough as the effects of the vaccine rollout begin to be felt, the economy rebounds, and the government moves forward with infrastructure projects, especially those connected with communications. The net effect of this will be to spur developers to step up their investments in new office space and/or in renovations of older buildings both within the CBD and in less central parts of the BMR. However, major developers’ investment plans indicate that over the period 2021-2023, growth in supply is likely to outpace what will be only somewhat weak recovery in demand, and so over the next 3 years, the occupancy rate will trend downwards.

Updated the key Industry Indicator: Office Building in BMR in each industry.By Patchara Klinchuanchun

Includes office for rent in Bangkok And perimeter, retail space for rent in Bangkok and perimeter

The retail rental market is expected to gradually recover from 2025 to 2027. This recovery will be driven by a slow rebound in consumer purchasing power due to a weakening domestic economic outlook impacted by ongoing escalation of global trade tensions. Nevertheless, well-designed sites in high-potential downtown locations that are popular with tourists and that serve office workers in the CBD will continue to see steady demand

The retail rental market is expected to gradually recover from 2025 to 2027. This recovery will be driven by a slow rebound in consumer purchasing power due to a weakening domestic economic outlook impacted by ongoing escalation of global trade tensions. Nevertheless, well-designed sites in high-potential downtown locations that are popular with tourists and that serve office workers in the CBD will continue to see steady demand

The retail rental market is expected to gradually recover from 2025 to 2027. This recovery will be driven by a slow rebound in consumer purchasing power due to a weakening domestic economic outlook impacted by ongoing escalation of global trade tensions. Nevertheless, well-designed sites in high-potential downtown locations that are popular with tourists and that serve office workers in the CBD will continue to see steady demand