Bangkok office rents reached their highest levels last year, surpassing the previous peak in 1992, says a report by CB Richard Ellis (Thailand) or CBRE, the international property consultancy firm.
Grade A rent in the central business district (CBD) averaged 770 baht per square metre per month, with the Park Ventures Ecoplex on Wireless Road named as Bangkok's most expensive office building at 925 baht per sq m per month.
Even though grade A rents in the CBD rose by 9% last year, Bangkok's office space remained the cheapest in Asia-Pacific.
Volume reached 8.1 million sq m, while overall occupancy was 88%, up from 86% at the end of 2011.
Net take-up or growth in the volume of occupied Bangkok office space was 160,000 sq m in 2012, almost double from 83,000 sq m in 2011.
last year saw 45,000 sq m of new space completed, while another 430,000 sq m are under construction and due for completion by the end of 2015.
Only 88,000 sq m will be completed in the CBD.
Bhiraj Tower, a 50,000-sq-m grade A building opposite The Emporium shopping centre, will be finished next year, while AIA Sathorn Tower, a 38,500-sq-m grade A building, will be ready in 2015.
"There is limited choice of space in grade A CBD buildings," said James Pitchon, CBRE's executive director and the head of research and consulting.
"Sathorn Square and the Park Ventures Ecoplex, the two most recently completed grade A developments, are now 70% and 87% committed, respectively. Tenants wanting more than 3,000 sq m on consecutive floors have few choices."
Despite the 9% increase in grade A rents, Bangkok remains the cheapest Asia-Pacific office location.
Hong Kong was the most expensive in 2012, with prime office rents equalling 6,600 baht per sq m per month, making them eight times more expensive than Bangkok despite falling by 18% during the year.
Of 31 Asia-Pacific cities surveyed by CBRE Research, rents rose in 20 and fell in 11. Four of the five most expensive office locations in the world were in Asia-Pacific last year.
Hong Kong's Central district topped the list, followed by London's West End, Tokyo's Marunouchi Otemachi area, Beijing and New Delhi.
Globally, office markets cooled last year on the economic slowdown in China, the recession in Europe and the tepid economic recovery in North America.
CBRE predicts demand for Bangkok office space will continue to grow.