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A New Model for Bangkok Office Leasing

By on May 10, 2016 in Office, Property News

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Boosted by the rising demands for office space in Bangkok central business district, the co-working space operator Hubba Co is tapping owners’ unused space to convert existing assets into income. They are aiming to have 50 locations by year-end.

Amarit Charoenphan, the company’s co-chief executive, said Grade A and Grade B office space in the city near mass transit has grown scarce with occupancy rates exceeding 90%.  “There is demand for co-working spaces near mass transit lines,” he said. “These people are entrepreneurs, start up business owners, new generation people and foreigners who come to work and travel in Thailand.”

People will pay a premium for flexibility. Alot of people don’t want to rent space at prime office buildings at 1,000 THB per square metre a month, and contracts for a year are seen as too long. As an alternative they seek co-working spaces where rents are lower with more flexible terms – these place are limited especially in prime locations.

Hubba started co-working spaces just 4 years ago. “Many people have unused spaces in prime locations like the CBD or near mass transit lines. We will turn them into an income source by making these co-working spaces,” he said.  Space owners can spend around 10,000 baht per square metre to rennovate and turn their unused spaces into attractive office areas. Hubba achieve their revenue by collecting 20% of the booking fee.

Source: Bangkok Post, 26th April 2016
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