Demand for Bangkok office space still strong
Bangkok’s appeal as a business hub is still strong, with demand for office space remaining robust even as the pandemic has pushed many businesses to scale down, according to Colliers International real estate consultancy.
“Key drivers of demand are e-commerce, technology and logistics operators, which are generating more income and need to grow their business by expanding office space,” said Phattarachai Taweewong, Research and Communications Director at Colliers Thailand.
Office occupancy in the capital overall edged up by 0.2 percent to 93.8 percent. The area with the highest demand was the Sukhumvit Road section of the central business district, where occupancy was 94.5 percent. Bangkok’s northern districts had the highest occupancy rate among the outlying areas of the city at 95.3 percent.
One area with growing demand is the Bang Na Trat section on the eastern edge of the city. Bang Na Trat Road is the main byway between Bangkok and the Eastern Economic Corridor (EEC), the showcase development zone adjacent to the capital that will be the center of advanced industries.
“Many companies are looking at Bang Na-Trat Road as it links the inner city and the eastern seaboard. Demand in this area will rise when the EEC is officially launched,” Phattarachai said.
The office market has not been immune from the pandemic, however. COVID-19 prompted many firms to scale down office space, relocate to new office buildings in the same location where rents are lower, or renovate their existing space to be more modern, Phattarachai said.