Bangkok office tenants are being urged to plan new office accommodation at least one year in advance of any more.
Marcus Burtenshaw, Executive Director and Head of Commercial Agency Department for real estate agency Knight Frank Thailand, said: “Tenants in the Bangkok office market are faced with a problem.”
“The Bangkok offices market still favours the developer. Tenants face increased rents upon renewal, and few relocation prospects offer competitive terms for comparable quality and location.”
“Now more than ever it pays to look ahead. We urge tenants to conduct a thorough analysis of their office accommodation strategy at least one year before their lease expires, and even longer if their scale demands it, or if regional or global corporate real estate departments are involved”
With business sentiment in Thailand improving, the amount of new Bangkok office space leased expanded around 36,368 sqm during Q2, but fell 37.1 percent from Q1.
Overall occupancy rates stood at 90.82 percent, while quarterly average rents remained stable across the market, rising 1.5 percent per annum