Popular residential listed property developer LPN Development has reentered the office development sector for the first time in almost 30 years.
The developer has launched Lumpini Tower Vibhavadi Chatuchak, a new development project with 25,000 sqm of office space.
The LPN project has two buildings. Building A will have office space for rent and Building B will offer strata title office space for sale.
Real estate firm JLL has been appointed as the sole leasing for Building A.
Lumpini Tower Vibhavadi Chatuchak marks the return of LPN to the Bangkok office market.
It completed its first two office buildings in 1989 and has focused solely on the residential sector since then.
Lumpini Tower Vibhavadi Chatuchak Building A will be a 21-storey Grade ‘A’ office development with 15,000 sqm of lettable space. It is planned for completion in the final quarter of 2019.
JLL said that the total stock of lettable office space along Vibhavadi Rangsit Road is standing at 240,000 sqm at present, with only 9 percent remaining vacant.
Office rents in the area average THB 750 per sqm per month, according to the real estate firm, which is well above Bangkok’s market-wide average office rentals of THB 667 per sqm per month.
Whether this location will prove attractive for leading companies remains to be seen. It’s not in central Bangkok as such, and while the rates appear to be competitive for a new-build, the agency may struggle to obtain high-profile tenants until the building has been completed.