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Bangkok office occupancy level to increase
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By Siti Sakinah Abdul Latif of theedgeproperty.com
Wednesday, 09 February 2011 18:28 Bookmark and Share

BANGKOK: The office market in Bangkok will see occupancy levels going up as there was limited new supply in the market segment due to it being least active in 2010 as the country was preoccupied with political disturbances and a possible double dip recession for many of its export destinations.

Colliers International Thailand's senior manager of research Antony Picon said that the future limited new supply can provide the market with an opportunity to reduce vacancy rates over the next few years.

In its Bangkok Office Market Report 4Q 2010, the occupancy rates remained stable over the course of the year as a whole but with variance according to area. The Northern Fringe of Thailand dipped from just over 86% to just below 84%, while the Outer Central Business District (CBD) improved by about the same amount and now reaches 86%, improving about 1% over the course of 2010.

The report noted that rental rates remained fairly static in 2010 as landlords maintained rates and provides incentives to attract tenants. Less than 6,000 sq m was added to supply in 2010 in the form of Office@Sivatel.

"In many ways, the big story of the office market in 2010 was that there was no story. My forecast for 2011 is the same again although the opening of Sathorn Square in 1Q 2011 will alter the dynamics in the Sathorn Road area — but overall, the tense global financial situation and lingering domestic tensions will keep many businesses in a holding pattern," he said.

Colliers managing director Patima Jeerapaet was also optimistic regarding Sathorn Square, the largest office building in the CBD since Empire Tower, saying that the tower is a modern office towers that reflects the energy and optimism of the future.

"Thailand is located in the heart of Southeast Asia and could gain significantly from the dramatic changes that are shaping the region and this will be very beneficial for the office market," he pointed out.

 

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