Bangkok Office Market Overview – August 2020
Rental momentum slowed in Q2 and is likely to soften in coming quarters, given impacts of COVID-19, occupiers’ right sizing, increase in renewals, and new supply coming to the market.
Despite the onset of COVID19, average rental rates across Bangkok’s office market continued to move upward in 2Q20 as landlords took advantage of a tight supply situation, particularly for occupiers in search of larger blocks (2,000+ sqm) of contiguous space. Average market-wide gross rents rose by 5.4% y-o-y.
The leasing market to be soft over the next several quarters, given impacts of COVID19 including delays in occupier decision-making (ongoing deals) and capex reductions and/or eliminations with respect to new lettings, be they expansions in-situ or relocations.