Recent earthquake tremors in Bangkok have raised concerns about structural safety within the office market. Although existing leases restrict immediate relocations, occupiers are strategically reassessing their options, with many adopting a “wait-and-see” approach before deciding whether to renew or relocate. This cautious approach has accelerated the ongoing “flight-to-quality” trend, particularly benefitting new Grade A buildings in the Central Business Area and Central North submarkets (e.g., Rama IX & Ratchadapisek corridor). In 2019, tenant movement showed no significant trend toward prime grade office upgrades. However, this pattern shifted noticeably in 2024, when tenants moved over 65,000 sqm of space from non-prime premises to Grade A office buildings.
Figure 1: Office relocation activities to prime grade offices, 2019-Q1 2025
Ageing office buildings in Bangkok face increasing pressure to compete not just on location or aesthetics but also on clear safety and sustainability credentials. While superficial refurbishments might extend their viability in the short term, long-term competitiveness will likely depend on more substantial structural retrofits or achieving recognised certifications.
For tenants, relocation decisions require careful consideration, particularly for companies with established roots in specific areas, where proximity supports employee commuting patterns and talent retention. While safety is paramount in decision-making, value for money and access to established business clusters remain critical considerations.
Although Bangkok’s recent earthquake caused no visible damage to the city’s office landscape in the immediate term, it has unsettled market confidence. In an era where trust is tangible, a building’s proven safety readiness and quality, not just location, will determine its future relevance in Bangkok’s evolving office landscape.