Bangkok workplace house owners should replace, renovate now — JLL Thailand

Bangkok property house owners ought to update their older workplace areas now to maintain up renters and adjust to altering consumer habits. Nest egg and upgrades of older amenities are necessary in the face of decrease demand and elevated competitors, as local developers plan to introduce more than 2 million sq. metres of recent workplace areas between 2022-2026.
Owners of ageing workplace buildings in good places ought to replace their properties by introducing facilities like cafes, fitness centres, and including expertise to the bogs, a chairperson of property advisor JLL Thailand told the Bangkok Post.
“Office market competition will improve because of several factors, not solely a rise within the emptiness fee of current provide throughout Covid-19 but also an influx of future supply slated for the following five years.”
As of 2021, Bangkok’s combined workplace house was estimated to be around 9.9 million square meters. In the following five years, approximately 440,000 sq. meters of new buildings are projected to be built per 12 months, totalling 2.2 million square meters by 2026.
In the previous two years, the brand new yearly supply has risen dramatically, reaching 470,000 square metres in 2021 and 350,000 sq. metres in 2020. Last 12 months, office gross sales dropped to 70,000 sq. metres, accounting for lower than half of the pre-pandemic norm of 145,000 square metres per year from 2014 to 2019.
Since some office employees may be anticipated to return to actual locations a couple of times per week, it has been beneficial that present office buildings adapt by introducing amenities such as improved workstations in communal spaces.
“People’s life and behaviours have changed for the rationale that pandemic. To adjust to fast-changing know-how and social distancing, they shifted to do enterprise from home or from wherever exterior the workplace.”
As Minutes of the declining gross sales, the emptiness fee elevated from lower than 10% between 2015-2020 to 15% in 2021. The common monthly rent of places of work in all levels fell 1.3% to 618 baht per square metre last 12 months as a result of increased availability and lower demand..