Even though people’s work habits are increasingly shifting to digital, Knight Frank Thailand, a real estate company, reported that there was an addition of 224,600 sq m of office space in 2023, while demand was only 143,000 sq m. This surplus has resulted in market oversupply. Additionally, office space is expected to increase by another 650,000 sq m in 2024.
The oversupply situation has decreased office space rental rates, as demand growth has not kept pace with supply. The competitive intensity forces office building owners to develop their spaces swiftly to address this situation.
In 2023, the average office space rental rate dropped to 78%, which is 1.9% lower than the previous year. This is significantly lower than the pre-COVID-19 period when the rental rate was 90%. These figures indicate that people’s behavior has changed, such as
Office buildings older than 20 years should be renovated to modernize and stay competitive. This includes integrating sustainable strategies to retain current tenants and attract new companies.
Technological advancements and the transition to clean energy are the key factors in elevating building quality, meeting well-being demands, and creating a business betterment.
As an ambition to Net-Zero Solutions Provider, Banpu NEXT offers total Smart Energy Solutions tailored to every business’s needs. These solutions are designed to enhance office buildings’ efficiency, reduce energy costs and carbon emissions.
Although competition in the office building market continues to rise, building owners can still renovate their properties to meet consumer demands by opting for smart energy solutions and modern technology. This will elevate their buildings to be sustainable, safe, and adaptable to new working trends, ensuring long-term business competitiveness. For business enterprises are interesting in Banpu NEXT smart energy solutions, please contact us at 02-095-6599 or www.banpunext.co.th
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