Q3 2012 | office
thailand
Bangkok office Market REPORT
Bangkok Office Market Summary The north of Bangkok is set to become a major business district as multi-national companies increasingly seek a presence in the city.
market indicators Q2 2012 - Q3 2012 new Supply demeand reantals occupancy
Bangkok currently has more than eight million square metres of office space, but demand is starting to outstrip supply, with little new land available in the Central Business District (CBD) and rents beginning to rise. Starting next year, new offices will start to come on to the market north of the CBD, and dozens of projects are due for completion in the northern fringe of the city in 2014 and 2015.
looking to the start of the ASEAN Economic Community in 2015. Thousands of companies have been registered in Bangkok every month since January 2012, and office occupancy is high throughout the city, with buildings near BTS and MRT mass transit stations able to charge premium rent. Increases in the minimum wage are adding to the cost of building management. Although some landlords have offset this by reducing staff, in particular by investing in CCTV cameras to replace security guards, the wage increase will eventually become one of the pressures driving rents up throughout the city.
The construction boom is fuelled both by local firms seeking to expand and by a growing demand for a regional base by companies
Historical Supply Total supply added in each five-year period
More than 26,640 sq m has been or is scheduled to be completed in 2012; approximately 24,200 sq m in the Outer CBD area and the rest in the Northern Fringe area. At the end of 2012 office stock in Bangkok will be around 8,042,700 sq m.
Source: Colliers International Thailand Research
www.colliers.co.th