Since Q2 2010, the total office supply in Bangkok was 7, 978, 543 m2, up 1. five per cent Y-o-Y. No new resource was completed in this quarter. Overall take-up in the Bangkok office market was 6, 859, 726 m2, up 0. 4% Q-o-Q and 1. 4% Y-o-Y. The overall occupancy rate also improved slightly from 85. 6% to 86% in this quarter. The vacancy rate was 18. 0%, an autumn from the 14. 4% documented in Q1 2010. In Q2 2010, overall rental prices fell for the 6th consecutive quarter considering that the starting of 2009. Grade A offices in the CENTRAL BUSINESS DISTRICT area faced a zero. 4% Q-o-Q and a 2. 9% Y-o-Y drop in rents, into THB 680/m2 in this 1 / 4 from THB 683/m2 in Q1 2010. Buy 500mg CBD Oil
In conditions of net take-up, Quality A non-CBD offices submitted the highest level of net new take-up with 25, 947 m2, mainly due to tenants moving into the vitality Complex. The growth was also anticipated to both expansion when the tenants moved and some relocation from level B buildings, increasing the take-up of space at non-CBD Grade A structures. Total net take-up was standing at 26, 924 m2, which was up 54% Q-o-Q and 99. 1% Y-o-Y.
Apart from the ongoing movement of tenants into the Strength Complex and the moving of Citibank from a Grade B CBD building to Interchange 21, a Grade A CBD office (resulting in the expansion of 26, 924 m2 in the total amount of occupied workplace in the quarter), with view to office space continued to be weak during Q2 2010. We expect that provided there is a continuing recovery in the global economy and some balance in Thai politics, the strong monetary growth in Thailand will bring about increased demand for work place but this could emerge the coming year rather than the second half of 2010.
Two office structures are scheduled to be designed in 2010: Sathorn Square (73, 584 m2); and Sivatel (5, 880 m2). Supply will continue to be limited in the approaching years, with only two Grade A CBD office buildings: Sathorn Square and Park Endeavors, expected to be completed. Due to the shortage of some other new supply, these projects are expected to be able to attract tenants when demand recovers. In the modern circumstances, however, office rentals are expected to stay toned within the next six a few months or they might fall further as landlords compete to retain tenants and load vacant space.
Recommendations and Advice
Rents have gone down for six consecutive sectors but with an increasing domestic economy and very limited new supply. This kind of trend will change and rents will rise. Generally there are only two new grade A buildings slated for completion. Tenants seeking large areas will have very few choices.
All of us recommend that tenants considering up grading or broadening, need to start out looking now to take good thing about the current low rents which are unlikely to land further also to ensure they can get the space that they need.