Market View – Bangkok Office Q2 – 2010
As of Q2 2010, the complete office supply in Bangkok was 7,978,543 m2, up 1.5% Y-o-Y. No new stock was finished in this quarter. Generally speaking take-up in the Bangkok office market was 6,859,726 m2, up 0.4% Q-o-Q and 1.4% Y-o-Y. The complete inhabitance rate additionally improved marginally from 85.6% to 86% in this quarter. The opening rate was 14.0%, a tumble from the 14.4% kept in Q1 2010. In Q2 2010, by and large leases succumbed to the 6th sequential quarter starting from the start of 2009. Grade A workplaces in the CBD region confronted a 0.4% Q-o-question and answer 2.9% Y-o-Y drop in rents, down to THB 680/m2 in this quarter from THB 683/m2 in Q1 2010.
As far as net take-up, Grade A non-CBD workplaces posted the most elevated level of net new take-up with 25,947 m2, basically because of inhabitants moving into the Energy Complex. The development was likewise because of both extension when the inhabitants moved and some migration from grade B structures, expanding the occupy of room at non-CBD Grade A structures. All out net take-up remained at 26,924 m2, which was up 54% Q-o-Q and 99.1% Y-o-Y.
Aside from the continuous development of occupants into the Energy Perplexing and the migration of Citibank from a Grade B CBD working to Trade 21, a Grade A CBD office (bringing about the development of 26,924 m2 in the aggregate sum of consumed office space in the quarter), interest for office space stayed feeble during Q2 2010. We expect that gave there is a proceeded with recuperation in the worldwide economy and some solidness in Thai legislative issues, major areas of strength for the development in Thailand will bring about expanded interest for office space yet this could arise one year from now as opposed to the last part of 2010.
Two places of business are planned to be finished in 2010: Sathorn Square (73,584 m2); and Sivatel (5,880 m2). Supply will keep on being restricted before long, with just two Grade A CBD places of business: Sathorn Square and Park Adventures, expected to be finished. Because of the absence of some other new stockpile, these tasks are supposed to have the option to draw in occupants when request recuperates. In the ongoing conditions, in any case, office rentals are supposed to remain level over the course of the following a half year or they might fall further as property managers contend to hold occupants and occupy empty space.
Suggestions and Exhortation
Rents have fallen for six sequential quarters however with a working on homegrown economy and extremely restricted new stockpile. This pattern will change and leases will rise. There are just two new grade A structures booked for finish. Inhabitants requiring enormous regions will have not very many options.
We suggest that inhabitants thinking about up evaluating or extending, need to begin looking now to exploit the ongoing low leases which are probably not going to fall further and to guarantee they can get the space that they need. Best CBD For Anxiety UK