By Andrew Batt:
Park Ventures Ecoplex, a Grade A office and retail development, has upped its asking rental rates to THB 900 baht per sqm per month – the highest rental rates in the Thai capital.
More than 70 percent of the office space has been leased, with the tenant mix being a combination of leading and well-known multinational companies such as Club21 Thailand, CIMB Securities, Servcorp, and Tractebel.
One of the key factors driving its success is the strategic location. The building is located in the heart of Bangkok’s central business district at the corner of Ploenchit and Wireless roads. With a direct skywalk access to the Ploenchit BTS station, tenants and visitors have very easy access to the property.
Other factors underpinning the project’s success include the high-quality specifications, its functional floor plate with a column-free design, and high ceilings. Being equipped with high technology and innovative energy-saving systems also add to its score as a ‘green’ building, a factor which is increasingly taken into account by tenants when leasing an office space.
According to Q1 research from CBRE Thailand, Grade A CBD rents rose to an average of THB 713 per sqm per month, up from from THB 702 per sqm per month in Q4 2011. The highest rents were seen in new grade A buildings in the CBD. Average rents for Grade A office space in the CBD rose by 1.6 percent quarter-on-quarter and by 4.9 percent year-on-year. The achieved rent at Park Ventures Ecoplex currently exceeds the market average by at least 20 percent.
The total office supply in Bangkok increased to 8.14 million sqm, a 0.3 percent increase quarter-on-quarter and 2 percent year-on-year. The supply grew by approximately 32,000 sqm, however there was no new supply of Grade A offices in CBD locations. CBRE expects this means that both rental and occupancy rates are well positioned for further growth.
Nithipat Tongpun, Executive Director and Head of Office Services at CBRE Thailand, said: “The office market continues to improve steadily, with an increase in the net-take up and higher occupancy rate. Providing there is no major external economic shock or domestic political event, the outlook for the Bangkok office market is positive.”
He added: “There is very little new space being completed in Bangkok this year. If tenants want to upgrade or expand, there is limited choice, especially for tenants requiring large spaces. Rents are rising in the highest quality and best located buildings. Therefore, it is strongly recommended that tenants plan well ahead in advance of lease expiry dates.”
For the latest property news from Thailand and around Southeast Asia in English, visit our Property News section. If you’re looking for Thailand property to buy, sell or rent you may like to visit www.ddproperty.com.