Office tenants fight for rent reductions amid supply glut

A slowing economy and growing office supply has prompted tenants to seek rent reductions to keep their businesses afloat, with discounts of up to 25% reported in the past quarter, according to property consultancy Knight Frank Thailand.

- KANANA KATHARANGSIPORN

Panya Jenkitvathanalert, partner and head of office strategy and solutions at the consultancy, said Thailand's economy is expected to slow in the second half of 2025, prompting many tenants to postpone major real estate decisions.

"They are adopting a more cautious stance," he said. "Even companies not directly exposed to exports are bracing for knock-on effects, including weaker domestic demand, postponed investment plans, and stricter cost controls. These factors could dampen leasing momentum in the coming quarters."