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Office rental rate up 4.9%

By on Jun 29, 2012 in Property News

The average rental rate of grade-A office space in Bangkok’s central business district in the first quarter rose by 4.9% year-on-year.

The highest rents were recorded at the Park Ventures Ecoplex, an office building on Wireless Road, where the asking price was 900 baht per square metre per month.

The average grade-A rents rose to 713 baht per sq m per month from 702 baht in last year’s fourth quarter, a rise of 1.6%, said Nithipat Tongpun, the executive director and head of office services at CB Richard Ellis (Thailand).

The Park Ventures Ecoplex had earlier charged the highest rates in the city, at 875 baht per sq m per month, and has since revised up its rates.

The total office supply in Bangkok increased to 8.14 million sq m, up by 2% year-on-year.

The supply grew by about 32,000 sq m in the quarter, but no new grade-A offices were added in central business district locations. Net new take-up of office space in Bangkok was 35,000 sq m in the quarter, while the overall occupancy rate improved slightly to 86.1%.

“The office market continues to improve steadily, with an increase in the net take-up and a higher occupancy rate. Provided there is no major external economic shocks or domestic political events, the outlook for the Bangkok office market is positive,” said Mr Nithipat.

He said there is very little new space being completed in Bangkok this year.

If tenants want to upgrade or expand, then there is limited choice, especially for tenants requiring large spaces.

Rents are rising in the highest-quality and best-located buildings. It is strongly recommended that tenants plan well in advance of lease expiry dates.

Source : Bangkok Post 29 June 2012

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