Bangkok office rents at new high

BANGKOK: -- CB Richard Ellis (Thailand), an international property consultant, yesterday said Grade A montly office rents in Bangkok’s Central Business District (CDB) had reached the average of 600 baht a square metre, the highest rate since the 1997 financial crisis, on the back of limited supply and growing demand.

Grade A office rents in Bangkok’s CBD rose by 25 percent year on year, while in the same area rents for grade B buildings rose by 21 percent.

According to a survey conducted by CBRE, the office market had an overall vacancy rate of 15 percent in the second quarter this year, compared with 19 percent in the same quarter last year. The grade A vacancy rate was 8.2 percent in the second quarter of 2005.

Nithipat estimated that grade A rent would reach 650 baht by the end of 2005 and 700 baht in 2006 for 200-300 sq.m. transactions.

Nithipat Tongpun, Director Head of Office Services at CB Richard Ellis, etsimated that lesser than 200,000 square metres of new office space would be completed in the next two years, mainly in buildings where construction was resuming after the 1997 financial crisis. Demand is expected to be of at least 300,000 square metres a year for the next two years.

“There is still a 30-40 percent difference in rents between grade A and grade B buildings, and we may see some tenants in existing grade A buildings move to grade B buildings,‘‘ he said.

--Business Day 2005-07-19

That's just another estate agency hype release. I rent an office in one of the better so called "Grade A" buildings and have just signed for another 3 years at 375 Baht per sqm.

Potential lessors would be better off if they check several properties and negotiate with the owners directly before signing their lease agreements. There are better deals out there then these agencies would have us believe.

That is the trouble - people read these press releases put out by the big agents and think - oh they must be right because they are a respected name ! But it`s all crap !! Anyone that relies on what the agents say are really being misled !