Office rent inching up in Bangkok
STRONG demand for office space both within and beyond Bangkok’s central business district has led to average rental rate edging up by 1 to 2% over the past year with this trend likely to continue throughout 2016, an in-depth research by Nexus Property Consultants reveals.
Almost a hundred percent occupancy was seen at most grade A office buildings in non-CBD areas, particularly Ratchadapisek, in this year’s first quarter.
“Demand still continues to grow in both CBD and non-CBD zones. As a result of limited supply, vacancy rate of grade A office buildings in CBD was 4.99%, a slight increase of 0.1% quarter-on-quarter.
“Vacancy rate in non-CBD zones was 4.11%, an increase of 0.60% over the fourth quarter,” Nexus’ detailed research said.
It was multinationals which give the occupancy rate the strongest push in the first quarter leading to average rental rate of grade A offices in CBD being 885.33 baht per square meter per month (sqm/mo) an increase of 4.6% year-on year.
Meanwhile the rental rate of similar grade offices in non-CBD areas was 641.94 baht sqm/mo or an increase of 7.25%.
Total office supply in Bangkok’ CBD stood at 2.29 million square meters (sqm) in the first quarter, of which 1.20 million was grade A.
In non-CBD areas, the supply increased to 1.77 million sqm or 9.6% year-on-year due to the completion of five buildings bringing in 156,055 sqm. This took Bangkok’s total supply to 4.06 million sqm.
Nexus’ research also shows an increase in serviced office supply with most occupiers being start-up businesses who need an office address and meeting room.
“This kind of service is becoming more popular because it serves a new working style and freelancing.
‘Unlike international serviced office brands that have to be in grade A buildings, local brands are located on minor roads and often are a trendily decorated house for user inspiration.”
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