Earthquake Spurs Office Relocation Considerations in Bangkok

CBRE Thailand, the leading international property consultant, reports that Bangkok’s office market in Q1 2025 continues to face mounting pressure from new supply, resulting in higher vacancy rates and intensifying competition among landlords. The recent earthquake in Myanmar on March 28, which was felt across Bangkok, has added a new dimension to office decision-making, prompting companies to re-evaluate their priorities and requirements in the wake of heightened safety concerns.

Amid these dynamics, Ms. Chotika Tungsirisurp, Head of Consulting & Research, commented, “While significant new supply continues to pressure occupancy levels, net take-up in Q1 was particularly strong, driven by relocations into Grade A+ buildings in the CBD and Grade A buildings in both CBD and non-CBD areas. In contrast, the Grade B office segment experienced negative net take-up.”

With the earthquake adding new urgency to these ongoing market shifts, CBRE has identified three major factors influencing the Bangkok office market since the event. Firstly, structural safety has become a key focus for both existing and prospective office occupiers. Ms. Maneerat Vichitrattana, Senior Director of Office Services, noted, “The number one priority for existing tenants was to ensure their landlords conducted thorough checks of the building structure so that it could be declared safe in accordance with the Bangkok Metropolitan Administration's announcement and used as normal.”

Secondly, the quality and clarity of landlord communication have become essential. In the aftermath, landlords were expected to provide timely, clear and concise updates through multiple channels to keep tenants informed and reassured about the actions taken. Landlords are also now expected to implement and distribute clear earthquake protocols as part of the office manual for all tenants. Following the earthquake, many landlords set a strong example by promptly leveraging embedded technology and a variety of channels—including building mobile apps, digital displays, social media accounts and conventional email—to keep tenants updated and confident in the building’s response.

Thirdly, CBRE has noted a shift in office preferences and additional requirements from companies that had previously decided to remain in their long-occupied buildings. Ms. Maneerat further commented, “Since the earthquake, some companies seeking new office premises have shifted their preference to low-rise buildings or lower floors in high-rise buildings. We are also seeing more companies consider relocating from certain older buildings affected by the earthquake. While some office leasing transactions proceeded as planned in the weeks following the earthquake, others have been delayed as companies seek assurances from potential new landlords due to interruptions in some building services.”

Overall, most office buildings in Bangkok have proved to be structurally sound and resilient. However, landlords who provided timely reassurance of building safety, communicated clearly with their tenants and quickly undertook any necessary remedial repairs have enhanced their buildings’ standing in the market. Conversely, buildings that did not communicate well or reassure their tenants in the aftermath of the earthquake are likely to be more vulnerable to tenants considering relocation.

As safety becomes the most important sign of quality, the earthquake is expected to extend and accelerate the “flight to quality” trend in Bangkok’s office market. “Inevitably, this will also prompt landlords of older buildings to consider adopting alternative strategies for their properties,” noted Mr. Nicholas Vettewinkel, Senior Director of Consulting & Research and specialist in strategic asset advisory.