Cap­i­tal’s of­fice space rents on rise

The Phnom Penh Post - - BUSINESS - Hin Pi­sei

RENTAL of of­fice space in the cap­i­tal saw a slight in­crease in the third quar­ter of this year com­pared to the sec­ond quar­ter, with a to­tal of more than 86 per cent of spa­ces oc­cu­pied, ac­cord­ing to a CBRE Cam­bo­dia re­port.

It said the newly-con­structed Key­stone Of­fice Build­ing pro­vided more than 15,000sqm of of­fice space in the third quar­ter, bring­ing the to­tal area of of­fice spa­ces in Ph­nom Penh to 360,000sqm – up 4.7 per cent from the quar­ter be­fore.

Grade A of­fice spa­ces have an oc­cu­pancy rate of about 68 per cent, Grade B (88 per cent) and Grade C (92 per cent).

Third quar­ter leas­ing prices were un­changed com­pared to the sec­ond quar­ter, with Grade A rang­ing be­tween $28 to $38 per square me­tre, Grade B from $18 to $28, and Grade C from $10 to $18.

CBRE Cam­bo­dia an­a­lyst Kim­sea Chea said eco­nomic growth and in­flows of for­eign com­pa­nies have pushed the de­mand for of­fice spa­ces in the cap­i­tal, es­pe­cially grade B of­fices.

“At present, Grade A of­fices in Cam­bo­dia do not seem to be very oc­cu­pied, but this num­ber will in­crease in the fu­ture.

“Over the next three to five years, the num­ber of [oc­cu­pied] Grade A of­fices will in­crease as many in­ter­na­tional com­pa­nies in­vest in Cam­bo­dia,” he said.

Cur­rently, there are only two Grade A of­fice build­ings in Ph­nom Penh – Vat­tanac Tower and Ex­change Square – while many of­fice space build­ings un­der de­vel­op­ment are Grade B, the re­port said.

James Hodge, sur­veyor and head of Pro­fes­sional Ser­vices at CBRE Cam­bo­dia, Key­stone’s mar­ket­ing agency, said that the grade B of­fice mar­ket is the best. He said the Key­stone Of­fice Build­ing launched 50 per cent of its grade B of­fice space in July.

He said most of the build- ing’s cus­tomers are com­pa­nies from abroad. “In­vest­ment in Grade B of­fices is high in Ph­nom Penh now. The mar­ket will be bet­ter in the fu­ture,” he said.

CBRE Cam­bo­dia es­ti­mated that in t he fourt h quar­ter, t here will be four ot her Grade B of­fices to be put up for rent, in­clud­ing t he East Com­mer­cial Cen­tre, Di­a­mond Twin, E.SUN Tower and El­y­see. The new sup­ply will bring the of­fice space in Ph­nom Penh to a tota l of about 400,000sqm.

The Min­istry of Land Man­age­ment, Ur­ban Plan­ning and Con­struc­tion said build­ing in­vest­ment cap­i­tal in the first nine months of this year was worth over $4.8 bil­lion. It was $5.6 bil­lion in the same pe­riod last year or a 14.47 per cent de­crease.

HONG MENEA

Vat­tanac Tower is one of only two Grade A of­fice build­ings in Ph­nom Penh.

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