Bangkok office rents are getting pricier

Thai capital is 86th in the world for most expensive occupancy costs

The cost of leasing prime office space in Bangkok has grown by leaps and bounds in the past year, according to the latest CBRE Global Prime Office Occupancy Costs report.

The Thai capital now ranks 86th out of 122 markets globally for the highest prime office rents at THB1,208 (USD39.5) per square metre a month. This represents the 46th biggest annual increase among the office markets.

It would cost THB1,040 per square metre a month on average to rent a small, grade A unit in the Bangkok CBD.

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The rate of increase has, however, slowed over the last 12 months and even gone below the five-year average, CBRE Thailand analysts noted. A limited amount of office spaces is expected to come online until 2021, after which new supply will exceed “historic levels” of growth in demand.

“A handful of the best grade A buildings in the central business district are achieving rents significantly higher than the average. These buildings are not just in prime locations, but are also technically better than their competitors in terms of air conditioning, lifts, energy efficiency and several other factors,” CBRE researchers noted.

Globally, office occupiers continue to seek higher-quality space in markets with robust infrastructure and social amenities, despite the weaker global economic growth in Q1 2019 and worries about the US-China trade war.