Turning Yesterday’s Offices into Tomorrow’s Opportunity

Bangkok is a thriving, ever-evolving city, with a metropolitan population of approximately 15 million. Yet a growing number of buildings are struggling with falling occupancy rates—a direct consequence of the city’s rapid modernization. As new developments rise with world-class design and amenities to meet modern user demand, many older properties are being left behind.

Many of these assets were constructed a generation ago, when the wider city had only half its current population and much of today’s transit and motorway network did not yet exist. As Bangkok’s infrastructure and business landscape advance, owners who do not actively consider—or in some cases, reimagine—how their buildings can be used risk substantial revenue loss in a landscape that has shifted around them.
 
Few sectors have seen more rapid change than offices. Recent additions to the market, such as Central Park, One City Centre and One Bangkok, have set new benchmarks for design, ceiling heights, sustainability (LEED, WELL, Fitwel), and amenities, attracting major international corporations as tenants. In contrast, roughly 70% of Bangkok’s office stock is now more than 20 years old, much of it lacking substantial reinvestment. Many of these buildings face rising vacancy rates and downward pressure on rents. Owners must confront a critical question: how can they protect income and asset value in today’s increasingly competitive market? 
 
There is no single solution, and sweeping answers rarely apply in real estate. Every building and location is unique. Owners must evaluate the fundamentals—design, site attributes and local context—before determining the most viable path forward.

Options for Building Owners

Some older buildings are well-designed and advantageously located. With targeted upgrades, they can still perform strongly in today’s challenging market. Reinvesting to enhance facilities, functionality and aesthetics can help maintain occupancy rates and support rental levels. The comparative cost of reinvestment versus the anticipated gains in revenue or asset value is a key factor in deciding whether to proceed. 

A case in point is the Montien Hotel on Surawong Road, a historic flagship property that underwent substantial reinvestment between 2019 and 2021. The modernization preserved its unique heritage while refreshing its amenities—demonstrating that, with the right approach, older buildings can remain fit for their original purpose.

Not every aging building lends itself to direct refurbishment. An office with deep floor plates, for instance, may be ill-suited for creating well-lit and attractive living spaces, requiring creative design solutions to overcome its limitations. In other cases, however, repurposing the building can yield the best results, provided the structure can be modified to meet new requirements. 

The Voravit Office Building, also on Surawong Road, illustrates this point. Facing diminished office demand due to limited transit access and fierce competition in the sector, the owner proactively repositioned the asset as a hotel. It now operates as the Mercure Hotel Surawong, optimized for current market needs.
 
Conversions like these often require substantial modifications to a building’s core—fire separation, acoustic insulation, and new plumbing and ventilation systems among them. Owners must realistically assess the complexity, cost and potential returns of such projects, as conversion costs can sometimes exceed those of new development. If a building already approaches the maximum gross floor area (GFA) permitted under planning regulations, demolishing and rebuilding to a similar size may not make financial sense given construction costs. Repurposing brings its own design and permitting challenges, but where the business case supports a new use, it can offer a viable and forward-looking strategy.  

Navigating Design and Regulatory Challenges

Over the last 30 years, Bangkok’s comprehensive urban plan has evolved considerably. As a result, many existing buildings are far smaller than the maximum GFA now permitted on their sites. In such cases, full demolition followed by redevelopment of a larger structure may unlock significantly higher land and asset value. Accurate financial and feasibility studies are vital, as redevelopment can sometimes cost more than conversion. Often, the underlying land is worth more than the operating building itself, meaning redevelopment may provide the strongest long-term economic outcome.
 
A recent example is the former Srifuengfung Building, an office building on Rama 4 Road, next to Lumpini Park. Following its sale to a SET-listed developer, the building was demolished, and an alternative-use project is now planned. The transformation of Rama 4—supported by nearby projects like One Bangkok and Central Park—has helped reposition the corridor as one of the city’s most dynamic prime CBD areas. 

The Way Forward

Each property and location must be evaluated individually and judged on its own merits. What is clear is that many owners, faced with falling revenues and occupancy, now have an urgent need to reconsider how their buildings are used and positioned for the future. For some, the answer will be reinvestment; for others, repurposing or even redevelopment. In some cases, selling the building to a buyer willing and able to reposition the asset may make the most sense. 

Even amid current headwinds, opportunity remains for owners who act decisively. Bangkok’s next generation of success stories may not all be new developments; they may be the buildings that adapt, evolve and remain relevant. 


This article is written by Barnaby Swainson, Head of Capital Markets, CBRE Thailand.