Earthquake jitters sway Thailand’s office market, send tenants scrambling for low-rises

The earthquake that shook Myanmar and Thailand in March has weighed on office property demand in Bangkok, with some tenants now favouring low rises or low floors in skyscrapers, according to CBRE.

The Thai capital was shaken by the 7.7 magnitude earthquake, which was centred in to neighbouring Myanmar close to the city of Mandalay, on March 28. A building under construction in Bangkok’s Chatuchak district collapsed, with 89 confirmed fatalities and 72 people still missing as of May 15.

The concerns over building safety are adding further pressure to an office property market that was already grappling with slowing demand. In the first three months of the year, the office vacancy rate rose to 28.1 per cent from 27.8 per cent in the last quarter of 2024, according to Cushman & Wakefield. In the same period, average prime office gross rents fell about 1.2 per cent to 939 baht (US$28.14) per square metre per month.