Bangkok Embraces New Class Of Office Buildings

26 Jun 2017

Park Venture Ecoplex

It used to be that Grade A buildings were the best and commanded the highest rents. Now it is Premium Grade office buildings that are tops in many leading global markets and the Bangkok office sector is embracing this new class of building, notes research from JLL.

The difference between Premium Grade and Grade A office buildings is not that significant and they both have many features in common. Despite this, there are rigorous criterion used to separate the 2 classes which can have significantly different rental rates.

“For example, Premium Grade office buildings generally feature higher technical specifications and levels of finishing, fixtures, and fittings throughout public and common areas such as lobby, rest rooms, lifts, and parking. There are also ‘intangible’ aspects to consider when identifying a Premium Grade asset. One of these is elevated market perception of the property as a blue-chip corporate address that helps make the building highly desirable and command superior rents,” says Dexter Norville, Director of Property and Asset Management at JLL, in a press release.

Property management is also used to determine whether or not a building is Premium Grade or Grade A. Management at Premium Grade buildings focus on keeping occupiers happy and treat them as customers and not necessarily renters. There are a few office buildings in Bangkok that are considered to be Premium Grade. The success of these projects could now see more developers in Thailand launch Premium Grade office buildings in the future.

“Some examples are Park Ventures, Sathorn Square, AIA Capital Center and AIA Sathorn Tower that make the grade and are attracting high-quality tenants at above average rents. With most of the newly completed office developments in Bangkok being Grade A buildings, the Grade A quality that is a key selling point today will soon become a norm. As a result, we believe Premium Grade developments will become a more prominent component of Bangkok’s skyline in the near future” says Norville.

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