Rental prices and occupancy rates for office space in Bangkok are expected to climb in 2016, The Bangkok Post reported. Property consultancies believe that demand from both local and international companies for Grade-A office space in the Thai capital’s central business district (CBD) will lead to the rise in both categories over the course of the year.
According to those who spoke with The Bangkok Post, monthly rents are likely to jump up in price by more than THB1,000 per sqm due to a lack of new supply and a stronger demand for office space than seen in previous years.
Surachet Kongcheep, associate director of research at consultancy Colliers International Thailand, told the newspaper that many local and international companies are looking for office space in Bangkok. The segment has witnessed a lack of new supply come on to the market in recent years.
Colliers noted that a total of 96,450 sqm of new office space was finished in 2015. This was unable to meet new demand during the first three quarters of the year which was noted as being more than 140,000 sqm.
That number is expected to continue to climb once the numbers from the fourth quarter come in. It is estimated that new office demand for 2015 will exceed 160,000 sqm once all the numbers have been totaled. “Demand for office space will continue in 2016, while there will be 193,000 sqm. in new supply being completed,” Surachet noted.
Grade-A office space in the CBD has an occupancy rate of more than 91 percent and this led to a hike in monthly rental rates which now average THB900 per sqm, The Bangkok Post added.
JLL Thailand stated that there would be 108,566 sqm of new office space from four buildings coming onto the market during 2016. The office buildings expected to be completed in the next year include the 65,630 sqm. G Tower and the 13,036 sqm. Rungrojthanakul Building. Both developments are situated in the Rama IX area.
