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📄 ANNUAL REPORT 2017

Bangkok Office Market Report 2017 — Vacancy, Rent & Net Absorption

Executive summary

Vacant space across the Bangkok office market fell by 27,547 sqm in 2017, comparing the same 180 buildings against 2016 — tenants took more space than they gave back. Occupancy rose from 89.9% to 90.5%.

Weighted asking rent for the same buildings fell from ฿719 to ฿660/sqm/month. 18 new buildings completed during the year, adding 722,823 sqm.

Analysis by Jirayus Boonyarattapan · survey period: December 2017
27,547
Vacant space fell (sqm)
90.5%
Occupancy (from 89.9%)
฿660
Weighted rent ฿/sqm
505,562
Vacant space (sqm)

How much vacant space changed, and what it means

Vacant, Dec 2016
516,583
Vacant, Dec 2017
489,035
=
Fell by
27,547
net absorption +27,547
📖 Reading this
This is the vacant space in the same 180 buildings at year end, against the year before. In 2017 vacant space fell by 27,547 sqm, meaning tenants took more space than they gave back; occupancy rose from 89.9% to 90.5%. 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 2017

Like-for-like (same buildings)
฿719 → ฿660
-8.2% · 180 buildings
Whole survey (all surveyed buildings)
฿719 → ฿665
-7.5% · 189 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 2017

18 buildings, 722,823 sqm of new leasable area.

By area (December 2017)

Bangkok office market by area, 2017
Area NLA Occupancy Vacant Weighted rent
Sathorn 788,820 91% 70,970 ฿797
Sukhumvit 500,213 92.7% 36,473 ฿703
Rama 9 447,578 96% 18,117 ฿453
Asok 407,120 93.5% 26,430 ฿631
Ratchadapisek 367,172 90.4% 35,337 ฿627
Chidlom 332,113 95.5% 15,100 ฿1,113
Bangna 303,018 75.4% 74,478 ฿565
Rama 4 299,918 91.4% 25,743 ฿685
Phloen Chit 276,539 82.7% 47,978 ฿1,000
Silom 269,888 92.6% 19,993 ฿742
New Petchburi 263,746 88% 31,660 ฿525
Surawong 207,890 91% 18,610 ฿490
Phaya Thai 175,705 92.3% 13,587 ฿513
Krung Thonburi 142,765 98.9% 1,532 ฿246
Phahonyothin 136,412 96.6% 4,673 ฿796
Rama 3 122,243 89.9% 12,354 ฿422
Vibhavadi Rangsit 96,056 92.9% 6,806 ฿613
Ramkhamhaeng 83,400 85.9% 11,771 ฿449
Naradhiwat Rajanagarindra 72,514 59.2% 29,566 ฿507
Srinagarindra 33,570 86.9% 4,382 ฿335

Method & scope

This report is computed from the December 2017 survey of the 189 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 180 buildings present in both December 2016 and December 2017. 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 2017 · Full methodology →

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