Rental rates for Grade ‘A’ offices in Bangkok’s central business district rose 4.3 percent year-on-year, according to new research from CBRE Thailand.
The real estate firm noted: “We have seen that since there is a more stable political situation now, tenants have proceeded with their expansion plans.
“The limited amount of space available in the most sought-after locations next to mass transit stations means that rents are likely to continue rising.
“There is very limited choice, especially in Grade ‘A’ buildings, and this means that tenants need to plan ahead or they will not be able to secure premises that best match their requirements.”
According to CBRE the total office supply in Bangkok increased to 8.3 million sqm – a 0.6 percent rise quarter-on-quarter at the end of Q3.
A mere 374,000 sqm of space is currently under construction and due for completion by 2016.
“We expect vacancy rates to drop further as there is limited future supply, and we expect demand to increase which will result in an increase in rents; however, the growth rate of rents is expected to be lower,” the report noted.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
