Q1 2013 | OFFICE
THAILAND
BANGKOK OFFICE MARKET REPORT
Bangkok Office Market EXECUTIVE SUMMARY Office space in Bangkok is getting more expensive as demand from international companies outstrips supply. No new office buildings were added to the market in the first quarter of 2013, although around 55,700 sq m is expected to be completed later this year. The Northern Fringe is the most popular area for office building development, and nearly 240,000 sq m of space is expected to be completed there by the end of 2014.
MARKET INDICATORS Q4 2012 - Q1 2013 NEW SUPPLY DEMEAND REANTALS OCCUPANCY
In the meantime, rental prices and occupancy rates for office space are significantly higher than they were in the first quarter of 2012, especially in the Central Business District (CBD). The growth in demand is largely fuelled by multi-national companies establishing new offices in Bangkok, and by the expansion of existing firms. The launch of the ASEAN Economic Community in 2015, and growing interest in the emerging markets of Myanmar, Cambodia and Laos, makes Bangkok an attractive hub for companies looking to expand operations in the region. The total office supply in Bangkok during the first quarter of 2013 was approximately 8,042,700 sq m. Most office buildings in Bangkok were completed before 2001, so are already more than 10 years old. Many of these older buildings have been renovated in recent years, and more are due to be refurbished during this year.
HISTORICAL SUPPLY CUMULATIVE SUPPLY IN BANGKOK, Q1 2013
Source: Colliers International Thailand Research Note: F = Estimated figures at the end of the year
Approximately 26,640 sq m of office space was completed and came on the market in 2012, while more than 55,700 sq m is scheduled to be completed in 2013. The total office supply in Bangkok at the end of 2012 was approximately 8,042,700 sq m, and there will be nearly 8,098,500 sq m by the end of
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2013. Only around 1,115,000 sq m of office supply has been added to the market during the past ten years, but more than 6,927,000 sq m was completed before 2001, as most office buildings in Bangkok were completed during the boom period between 1992 and 1999.