Bangkok office rents continue to rise, hitting record highs in the first half of this year, according to research from JLL. The soaring rents have forced some businesses to consider alternatives, such as co-working centres or other non-traditional office solutions, in order to save on costs.
Many building owners, especially those with newer properties, are taking advantage of the shrinking office supply by increasing rents. JLL found that vacancy rates for Bangkok office space have settled in the single digits, something not seen for roughly 30 years.
“Rising rents and falling vacancies are being driven by a flight to quality – tenants relocating and in most cases expanding – from older buildings to new projects,” Andrew Gulbrandson, head of research and consulting at JLL, explained to the Bangkok Post.
Soaring Bangkok office rents not the only option for businesses
Big companies are choosing to lease larger commercial blocks in newer office towers found throughout Bangkok in order to attract and retain talent. However, the Thai capital has seen a growing number of freelancers and SMEs arrive. This group desires flexible solutions with co-working facilities and serviced offices popular choices.
That’s because co-working centres and serviced offices have more flexible payment terms and do not require long-term leases. The large capital outlay to secure a space, coupled with the soaring Bangkok office rents, are not palatable for many smaller firms looking to set up shop.
Regus is a good example of a service office provider with an expanded range of offerings. They not only provide affordable office space, but also have hot desks and other popular co-working options. This flexibility ensures companies hoping to save on Bangkok office rents or not wanting to be locked into a long-term contract have an option.
There are 24 Regus-backed facilities in Bangkok and the company boasts a global presence that can be utilised by members. And with flexible membership plans, businesses are able to find a solution that works best for them regardless of it has local, national or global requirements.