The commercial office property market in Bangkok is beginning to see a move forward and growth in demand and rent, following a period where the market has been held back due to the combination of the global crisis and Thailand’s political uncertainty.
The latest analysis from property consultant CB Richard Ellis shows that while office demand has been slow, the market as of the second quarter of 2011 was more active with clearer signs of expansion from existing tenants and a marginal increase in occupancy rates from the previous quarter to 86.5%.
CBRE’s office enquiries were up 34.2% quarter on quarter, an upswing indicating the market is heading towards the right direction. Also 59% of enquiries involved an expansion, indicating that the key demand driver is from the expansion of existing businesses and space requirements from existing tenants rather than demand from entry of new multinational companies (MNC’s).
Key growth industries in the past several years have been in the service and consultancy sectors. The trend of expanding businesses and space requirements is expected to continue and with limited new supply coming to the market, rents will increase.