Another Thailand property record has been broken with the 50 percent pre-leasing of a new Bangkok office building six months before its expected completion.
The announcement from real estate firm CBRE, who also expressed its confidence that the Bangkok office market will remain strong, relates to FYI Center (pictured) – an office development by Golden Land adjacent to the MRT mass-transit system at Queen Sirikit National Convention Centre station.
Nithipat Tongpun, Executive Director and Head of Office Services at CBRE Thailand, said: “According to the latest survey by CBRE Research, office demand has held up well despite the overall weak economy.
“During the first half of 2015 the total net take-up grew by 100,000 sqm, an increase of 4.8 percent year-on-year. A significant component of this demand has come from e-commerce companies – a sector that is just starting to take off in Thailand.”
CBRE Research also reported the total supply of office space in Bangkok is 8.4 million sqm, with new supply growth rate at only 2.1 percent year-on-year, while the overall net take-up is still growing which has resulted in a very low vacancy rate of 9.7 percent.
“Location is always the most important factor in a tenant’s decision. Office buildings which are close to a mass-transit system, such as the BTS skytrain or MRT, are usually first choices.
“FYI Center can tick the box in terms of location by locating next to the Queen Sirikit National Convention Centre MRT station. A great potential of this location is from future projects in the area,” Nithipat added.
Thanapol Sirithanachai, President of Golden Land Property Development, said: “We are delighted that FYI Center has gained strong confidence from tenants by pre-leasing our office space.
“The rental has now risen to THB 800 per sqm per month, up from THB 780 per sqm per month, the rental we set before the construction’s commencement.
“We admit that location is a very important factor however development concept is also another key factor that office building developers need to consider.
“FYI Center has already proven this by representing a workplace for the new generation (Gen-Y) who have changed their working style to be a work-life balance,” he added.