Workers at an office building site on Sathon Road. Experts expect demand for office space in Bangkok's central business district will remain strong. PATTARACHAI PREECHAPANICH

Grade-A office space in the central business district (CBD) will fetch a higher occupancy rate next year, say property consultants.

In addition, monthly rents will increase to more than 1,000 baht a square metre due to solid demand and limited new supply.

Surachet Kongcheep, associate director of research at consultancy Colliers International Thailand, said strong demand for Bangkok office space from local and international companies would continue next year.

This year a total of 96,450 sq m of new office space was completed, while new demand during the first three quarters totalled more than 140,000 sq m.

New office demand for the whole year is expected to exceed more than 160,000 sq m in total.

"Demand for office space will continue in 2016, while there will be 193,000 sq m in new supply being completed," he said.

Currently, the occupancy rate of Grade-A office space in the CBD is higher than 91%, resulting in an increase in monthly rates to more than 900 baht per sq m.

Many office spaces revised up rental rates to more than 1,000 baht per sq m a month.

Risinee Sarikaputra, director and head of research and consultancy at property consultant Knight Frank Chartered (Thailand), said the overall performance of the grade-A office rental market this year was healthy with higher occupancy rates.

Rental rates were 905 baht per sq m per month with an occupancy rate of 93.5%.

Next year, it is anticipated there will be 195,245 sq m of new office space added to the supply. Up to 147,150 sq m of such space will be located outside the CBD while a mere 48,095 sq m will be located within the CBD. The latter will likely command average rents of 1,000 baht per sq m. "The overall office market trend is good. Rental prices are likely to rise due to the relatively low increase in office space supply," Ms Risinee said.

The average increase in new office space is estimated at 200,000 to 300,000 sq m, while the remaining available space is 300,000 sq m.

Ms Risinee said 2016 would be a favourable year for landlords or owners of office buildings, as they would enjoy enhanced bargaining power when it came to rent negotiations with tenants.

According to JLL Thailand, there will be 108,566 sq m of new office space from four buildings being completed next year, comprising the 65,630-sq-m G Tower and the 13,036-sq-m Rungrojthanakul Building in the Rama IX area.

The 5,000-sq-m Thai Electric Building on Phetchaburi Road will be used by the owner, while the 24,900-sq-m Pearl Bangkok on Phahon Yothin Road is owned by Pruksa Real Estate Plc's major shareholder Thongma Vijitpongpun.