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Bangkok Office Rental – Bangkok Third for Affordable Offices says CBRE

By on Aug 22, 2013 in Office, Property News
Bangkok Office Rental

Bangkok Office Rental

The Thai capital is one of the few office markets in Asia-Pacific where both take-up rates and rents are rising. Increased demand and very little new supply help to reduce vacancy rates and increase rents, but Bangkok Office Rental remains the third-cheapest office location in the region after Manila and Wellington.

These are the findings of the second-quarter 2013 edition of the Asia Pacific Office MarketView issued by CBRE.

The report also showed office occupiers across Asia-Pacific are remaining cautious as long as the regional economic outlook continues to be downbeat, a trend that continued to inhibit leasing activity in most markets during the period.

The CBRE Asia Pacific Office Rental Index recorded marginal growth of 0.1% quarter-on-quarter in the period and was flat for the previous seven quarters. The second quarter was the third straight one to show a year-on-year decline, this time 0.2%. The most significant rental movement was in Beijing, where grade-A rents fell for the first time in three years.

Comparatively more upbeat markets were led by Tokyo, which recorded grade-A rental growth of 1.5% quarter-on-quarter, the first time in five years that rents have risen for two consecutive quarters.

“Bangkok recorded an eighth consecutive quarter of growth for prime grade-A central business district (CBD) rents, an 8.6% increase year-on-year to 880 baht per square metre per month. Demand was firm and came primarily from international companies across a wide range of sectors. No new grade-A supply was completed. Grade-A rents will continue to rise on the back of limited supply and steady demand, but the growth rate has now passed the peak,” said Nithipat Tongpun, the executive director and head of office services at CBRE Thailand.

Net absorption in Asia-Pacific in the second quarter totalled 660,000 sq.m., slightly below the five-year historical average for this period.

In more mature markets where rents are falling, some occupiers were taking advantage of falling rents to upgrade the quality of their office space, although it remained challenging for large users to secure big contiguous spaces.

Mr Nithipat added: “There is very little choice of space available in Bangkok’s CBD grade-A buildings, particularly for tenants seeking more than 1,000 sq m. Tenants needing more space must now look at preleasing before buildings under construction are completed.” To continue reading, visit Bangkok Post.

Source | Bangkok Post 22 August 2013

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