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📄 ANNUAL REPORT 2016

Bangkok Office Market Report 2016 — Vacancy, Rent & Net Absorption

Executive summary

Vacant space across the Bangkok office market fell by 81,924 sqm in 2016, comparing the same 177 buildings against 2015 — tenants took more space than they gave back. Occupancy rose from 88.7% to 90.4%.

Weighted asking rent for the same buildings rose from ฿627 to ฿729/sqm/month. 8 new buildings completed during the year, adding 393,096 sqm.

Analysis by Jirayus Boonyarattapan · survey period: December 2016
81,924
Vacant space fell (sqm)
90.4%
Occupancy (from 88.7%)
฿729
Weighted rent ฿/sqm
517,797
Vacant space (sqm)

How much vacant space changed, and what it means

Vacant, Dec 2015
546,330
Vacant, Dec 2016
464,406
=
Fell by
81,924
net absorption +81,924
📖 Reading this
This is the vacant space in the same 177 buildings at year end, against the year before. In 2016 vacant space fell by 81,924 sqm, meaning tenants took more space than they gave back; occupancy rose from 88.7% to 90.4%. The panel is held fixed because counting newly-opened buildings would show vacant space rising even if no tenant had moved out. The trade calls this difference net absorption, with the sign reversed: vacancy falling is positive, vacancy rising is negative.

Rent in 2016

Like-for-like (same buildings)
฿627 → ฿729
+16.3% · 177 buildings
Whole survey (all surveyed buildings)
฿627 → ฿719
+14.7% · 182 buildings

The two differ because the mix of surveyed buildings changes — when newer, pricier buildings enter the survey the overall average looks higher even if existing buildings did not raise rents. For trend reading, rely on the like-for-like figure.

New supply completed in 2016

8 buildings, 393,096 sqm of new leasable area.

By area (December 2016)

Bangkok office market by area, 2016
Area NLA Occupancy Vacant Weighted rent
Sathorn 788,820 90.8% 72,629 ฿742
Sukhumvit 500,213 87.4% 63,058 ฿1,226
Rama 9 447,578 95.5% 20,034 ฿489
Asok 407,120 93.9% 24,828 ฿622
Ratchadapisek 327,241 91.3% 28,513 ฿615
Bangna 303,018 76.6% 70,844 ฿553
Chidlom 300,113 96.2% 11,289 ฿847
Rama 4 288,714 91% 25,913 ฿683
Phloen Chit 276,539 89.2% 29,749 ฿938
Silom 269,888 91.9% 21,936 ฿727
New Petchburi 263,746 86.3% 36,219 ฿528
Surawong 207,890 93.3% 13,991 ฿487
Phaya Thai 175,705 91.6% 14,716 ฿516
Krung Thonburi 142,765 98.1% 2,727 ฿344
Rama 3 122,243 86.5% 16,546 ฿430
Vibhavadi Rangsit 96,056 93.2% 6,512 ฿622
Phahonyothin 92,166 99.3% 670 ฿418
Ramkhamhaeng 83,400 68.1% 26,584 ฿438
Naradhiwat Rajanagarindra 72,514 63.1% 26,723 ฿496
Srinagarindra 33,570 87.1% 4,316 ฿278

Method & scope

This report is computed from the December 2016 survey of the 182 office buildings OfficeBangkok tracks — not a census of every Bangkok building. All figures count only buildings surveyed that year, so a year with thinner coverage is not flattered by a full-stock denominator. The vacancy movement and the rent change use a like-for-like panel of 177 buildings present in both December 2015 and December 2016. Rents are asking rents, weighted by vacant-space size — not effective (post-incentive) rents. Figures in this report are frozen to that survey and do not move as newer data arrives; for current numbers, see the market pages.

Report period: December 2016 · Full methodology →

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