Since 2020, the Covid-19 pandemic has led the government to declare a state of emergency, enforcing curfews and banning gatherings. Consequently, going to the office was prohibited, compelling many companies to quickly adapt. At that time, many businesses were still operating from offices daily and lacked systems to support remote work. For many people, this was their first experience working from home.
Adapting to Work from Anywhere
As time passed, people became accustomed to working from anywhere, especially Generation Y (1980-1997) and Generation Z (1998-2024). These groups are already familiar with using technology for learning and working. Particularly, Generation Z, who have never experienced a traditional 5-day work week in an office, question the necessity of going to the office and often prefer workplaces that offer flexible hours and locations. Many companies have now adapted to this new norm, significantly reducing the demand for office space in Bangkok.
Changes in Office Space Utilization
Several multinational companies have downsized their office spaces and restructured the use of their offices. Unlike the past, where everyone had a fixed desk, companies now emphasize flexible space usage. They have implemented hot desks/hot seats and designed meeting rooms with partitions that can be adjusted to create large, small, or open spaces for town halls.
Surge in Office Space Vacancies
This shift, combined with the fact that the office market is experiencing a surge in new office buildings beyond market demand, has resulted in a significant increase in office space vacancies in Bangkok, reaching 23% in Q2.
The Return to Office Policy
However, many companies have started implementing policies to require all employees to return to the office from early 2024. These companies are facing resistance from employees who are accustomed to hybrid work models and believe that commuting to the office wastes time. They feel that working from anywhere allows them to be more efficient without the need to travel.
The Future of Bangkok's Office Market
Therefore, it will be interesting to observe whether these efforts to bring employees back to the office will succeed and what impact they will have on the future of the office market in Bangkok.
