Bangkok run out of office space
CBRE has said the Bangkok office market remains strong with steady demand.
Landlords have enjoyed higher rental rates. The total net take up of office space in Bangkok for the first nine months was 140,000 square metres. CBRE expects that figure to approach 200,000 square metres by the end of the year.
CBRE Research shows that more than 850,000 square metres of new office space is under construction and due for completion between Q4 2018 and Q4 2022, with more than half of the total in the central business district.
Another 1.7 million sqm of office space is being planned. CBRE expects construction to start on more project in 2019. It will increase the future supply completed in 2020 to more than 500,000 sqm.
According to Nithpat Tongpun of CBRE Thailand, the office market outlook remains the same, with a steady level of demand growth of around 200,000 square metres per year and rents continuing to rise, but at a slower rate until around 2022, when new supply will exceed demand.
Co-working spaces remain an emerging source of demand, especially in new Grade A office buildings, with 44,000 square metres of space leased over the last 18 months. As more co-working spaces are completed, they will compete more directly with traditional office space and may reduce net take-up.
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