Rents and occupancy rates continued trending upwards in Bangkok during the third quarter, according to the latest edition of Edmund Tie & Company’s Real Estate Times. The news for the retail sector was bleak, however, with the occupancy rate falling and rents remaining the same when compared with the second quarter.
The office leasing market in Bangkok’s CBD remained active in the most recent quarter. The report pointed out that demand for Grade A office space continued to grow with Grade A office rents in the CBD rising by 1.3 period q-o-q. That trend is likely to continue with office rents throughout Bangkok expected to increase with strong demand from domestic and international companies. The occupancy rate for office space in the CBD now sits at 90.7 percent, increasing .7 percent q-o-q.
The third quarter was quiet on the new launch front with no new CBD office space coming online. The Pearl Bangkok, which is mainly used as Pruksa’s Head Office, was the only new office property to open and that took place in a non-CBD location.
The retail sector continues it sluggish performance with rents remaining the same q-o-q. The latest Real Estate Times noted that occupancy levels for retail space in the downtown area decreased marginally in the third quarter with the average occupancy rate in the midtown area also down. That is due in part to an increase in stock.
Total stock in the midtown market increased by 1.5 percent q-o-q with a few new projects coming online in the most recent quarter. The new retail space at the G Tower office building was among the most notable projects to be completed. The building is situated on Rama 9 Road, in an area that is seen as a growing commercial and residential area.
