Supply of office space to rise by 1.1 million square metres in 3 years
Colliers Thailand warns of falling rents due to oversupply
A leading commercial real estate services company predicted that the supply of office space in Thailand would grow by 1.1 million square metres in the next three years and warned the market could be oversupplied.
Colliers Thailand warned in its fourth quarter report for 2024 that the rising supply of office spaces could go against the dropping demand.
It reported that there were 10.266 million square metres of office space in Thailand in the fourth quarter of this year, an increase of 3.79% compared to the previous year.
But it said the occupancy rate fell to 86.86%.
It warned that if the demand did not increase, the developers could be under much pressure.
Colliers Thailand said that e-commerce, financial institutions and co-working spaces could be among businesses that could lead to increased demand for office spaces.
Colliers Thailand warned that developers of office spaces may not be able to compete by cutting prices as supply is excessive, prompting most to already lower rent rates.
It advised developers to consider other selling points, such as increasing common use spaces and holding activities to drive traffic to their buildings or adding new technologies to make their spaces more convenient for tenants.
