According to CBRE's latest research, grade A Central Business District (CBD) office rents reached a record high of THB998sq.m. per month, a 3.1% YoY increase for Q1 2018. CBRE expect this growth trend to continue.

At a glance:

• Total take-up was 65,000sq.m. in Q1 2018, an increase of 15.1% YoY.
• Overall vacancy rates fell to 7.3% over Q1 2018.
• 750,000sq.m. of office space is currently under construction. 

The CBRE Bangkok Office Q1 2018 report identifies Graysorn Tower as achieving a new record of 1,500 baht per square metre per month, while average rents for grade A CBD buildings were just below 1,000 baht per square metre per month. 

Source: CBRE Bangkok Office Q1 2018 Report

The total take-up was 65,000sq.m. in Q1 2018, an increase of 15.1% YoY, led by the completion and owner occupation of the new Bank of Ayunhya Building (Krungsri Ploenchit Tower) on Ploenchit Road and Thai Rath's new building on Viphavadi Road. 

The report also reveals that overall vacancy rate fell to 7.3% and CBRE expect this figure to remain at this level for the next three to four years. 

Currently, around 750,000sq.m. of office space is under construction including One Bangkok and The Parq on Rama 4 Road, both of which are in the first phases of development, with anticipated completion dates to fall between now and the end of 2022. 

CBRE Research forecasts that the growth in demand will match new supply for the next three years.

The report also suggests that market direction from 2022 and onwards will be much harder to predict, revealing that there are approximately two million square metres of new office space currently being planned on sites that have been acquired by developers, but as yet no construction has begun. 

CBRE also expects a number of co-working spaces to open across a range of grade A CBD buildings in Bangkok this year. 

Roongat Veeraparkkaroon, Director of Advisory and Transaction Services, CBRE Thailand said: "Globally, there is a trend for some companies choosing to acquire office space as a service from co-working space operators rather than commit to lease and incur a capital expense in fitting out.  Co-working space is not just aimed at start-ups and co-working space operators will be competing with landlords offering offices on traditional lease terms.” 

Despite this disruptive change in the office leasing market, CBRE Research forecasts the net take-up in 2018 will be similar to that of 2017.

Key developments for 2018:

• Singha Complex at the Asoke/Phetchaburi Intersection (60,000sq.m.)
• MS Siam at the Rama 3/Industrial Ring Road Intersections (40,000sq.m.)
• T1 Building at Thonglor BTS Station (22,000sq.m.)
• Ladprao Hill at Ladprao MRT Station (6,000sq.m.)
• Summer Hub at Prakanong BTS Station (5,000sq.m.)

Click here to view the CBRE Bangkok Office Q1 2018 Report. 

For more information about the CBRE Bangkok Office Report phone or email James Pitchon of CBRE Thailand via the contact details listed below. 

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