Lack of supply of Bangkok office space is resulting in increasing rents and companies considering moving out of the CBD.
Office space in Bangkok is becoming more expensive as demand increases. Edmund Tie and Company’s recent research has calculated a 0.3 percent increase in rent quarter-on-quarter for grade A Bangkok office space in the capital’s CBD district. Rents now stand at THB 785 per square metre.
Bangkok continues to experience high office occupancy rates. In the CBD this is at 90 percent, an increase of 0.2 percent from the previous quarter. It is predicted there is currently over 100,000 square metres of office space under construction in the city however no new buildings were launched in the CBD in the second quarter of 2016.
However outside of the CBD the FYI Center did come to the market. Sat on the corner of Rama 4 and Ratchadapisek Road, this 48,000 square metres of Bangkok office space has a slogan of, ‘For your inspiration workplace, is tailored to create Working, Dwelling, Playing, Relaxing and Inspiring lifestyle’. With co-working spaces, cycling storage facilities and 24 hour services, the FYI Center is a new breed of office space in Bangkok. Aimed to be much more than just somewhere to work, it will be inline with other modern office buildings across the world that have similar facilities that companies come to expect as the norm these days.
Edmund Tie and Company are receiving increasing number of enquiries for office space from both Thai and multinational companies. Landlords are responding to increased demand by gradually pushing up rents. For one grade A building, the asking price is THB 1,300 square metre. As such the forecast for the rest of the year is expected to be more of the same partly due to the limited supply. However Edmund Tie and Company do expect that companies will start to shift from the CBD to outer areas, but being close to the mass transit network remains a priority.
