bangkok office market report q2 2012

7/31/2019 Bangkok Office Market Report Q2 2012

1/11

Q1 2012 - Q2 2012

new Supply

demeand

reantalS

occupancy

thailand

.s..

Bangkok Ofce Market

highlightS

Mre tha 70% the existi ce buildis

were supplied t the maret i the 1990s, aperid ecmic rwth attributable t a

sure i mauacturi exprts. This is i star

ctrast t the mere 2% added i the ve years

llwi the eects the Asia Fiacial

Crisis (AFC). Eve with the pic-up i thesecd hal the decade, ly 13% the

supply appeared duri the rst decade the

cetury.

Q2 2012 | oice

market indicatorS

total Supply added in each five-year period

Surce: Clliers Iteratial Thailad Research

BAngkok oFFICE MARkET REPoRT

oe ce buildi cmpleted i Q2 2012 with

a ttal area arud 20,000 sq m was added

t the maret.

The averae ccupacy rate ad rets i all

lcatis remai similar t the previus

quarters. Althuh there has bee a sliht rise

rm the previus quarter i sme ce

buildis, t much eect has bee elt acrss

the wider maret.

Ba is hihly attractive r ivestrs wh

wish t tae a rst ivestmet step it ASEAn,

especially the sub-rei Myamar, Las

ad Cambdia. As a result, several iteratial

cmpaies are li r reial ce space

i Ba.

The ew Ba Tw Pla is aimed at

ecurai the expasi Bas

busiess area t ce buildis i late

Suhumvit areas ad t the rth al

Ratchadapise Rad.

hiStorical Supply


2/11

The ttal ce supply at the ed 2012 will be apprximately 8,105,000

sq m. The Ba ce supply has rw slihtly ver the past te

years. Mre tha 85% the ttal supply r mre tha 6,860,000 sq m

ce space were cmpleted bere 2000 which meas that the ce

buildis i Ba are mstly lder tha 10 years. Sme buildis

ctiuusly revate ad uprade their acilities, while sme lac

maiteace.

Apprximately 20,000 sq m were cmpleted i Q2 2012 ad mre tha

87,000 sq m i ttal supply are scheduled t be cmpleted ver the

remaider 2012. Ruhly 94,000 sq m ce buildi space were

cmpleted aually rm 2000 t 2008 while mre tha 615,000 sq m

were cmpleted per year rm 1991 - 1999.


Remar: F = Frecast at the ed the year


Remar: F = Frecast at the ed the year

hiStorical Supply by year, Q2 2012

additional Supply for each year, Q2 2012

COLLIERS INTERNATIONAL | P. 2

Bangkok oice Market rePort | Q2 2012


3/11

Supply by location, Q2 2012



nearly 80% the ttal supply is lcated i the area al existi mass

trasit lies. 36% the ttal is lcated i the CBD, llwed by the

nrther Frie with arud 20%. I the ext tw t three years the

prprti i the nrther Frie area will raise t 22% Bas

ttal as may ew ce buildis are uder cstructi ad plaed

r cmpleti i 2014.


cumulative future Supply by location

future Supply


nearly 330,000 sq m ce space are scheduled t be supplied iBa by 2014 i ly ur zes. The nrther Frie area will tae

a hih prprti the ttal supply as early 210,000 sq m are scheduled

r cmpleti i 2014 i the area, but this represets ly a 2.6%

icrease rm the ttal existi supply. This limited additial space tthe maret will be absrbed ad pit the way t reater ccupacy

levels ad stretheed retal rates ver the ext ew years.


4/11COLLIERS INTERNATIONAL | P. 4

The averae ccupacy rate i all lcatis Ba is hiher tha

80%. The outer City West ad outer CBD areas had the hihest

ccupacy rate i Q2 2012 while the outer City nrth was the lwest

ad remaied the same as the previus quarter. Althuh the averae

ccupacy rate i the outer City West area was hihest, the ttal supply

i this area is ly 258,000 sq m ad it is less tha the CBD area that

has ver 2,625,000 sq m.


occupancy rate by location, Q2 2012

demand take-up


occupancy rate in three locationS, Q1 2010 Q2 2012

occupacy rates i the three mai lcatis still remaied similar t Q12012, just a sliht icrease rm the previus quarter. The averae

ccupacy rates i the outer CBD ad nrther Frie areas were

hiher tha i the CBD area, due t these tw zes bei lcated al

mass trasit rutes ad eri cheaper rets.

Althuh apprximately 20,000 sq m were cmpleted i Q2 2012, mst this space is ccupied by wers ad thus there is miimal impact

the ce maret.





The averae ccupacy rate r ce buildis i Ba ctiues t

rw with ew supply added t the maret i Q3 2011. other ce

buildis cmpleted ater these tw buildis did t aect the ce

maret as a whle as they were ly small prjects. With mdest rwth

predicted r the cmi tw years ad ive the limits ew supply,

Clliers Iteratial Thailad predicts a radual but sustaied rise i

ccupacy rates rm 2012 util 2013. This will i tur lead t a certai

hardei retal rates i rward.

actual and future eStimate of occupancy rateS


newly regiStered firmS from January 2009 - may 2012

demand driverS

Surce: Departmet Busiess Develpmet ad Clliers Iteratial Thailad Research

Based the statistics rm the Departmet Busiess Develpmet,fds i the last quarter 2011 als aected the umber ew

cmpay reistratis last nvember. nearly 3,500 cmpaies were

reistered i April ad May 2012, ad apprximately 9,880 cmpaies ithe rst ve mths 2012, apprximately 10% lwer tha the same

perid last year.

Future



The averae retal rate i the CBD area remais the hihest. It is

apprximately 49% hiher tha the averae the ttal maret. This is

because mst grade A buildis are lcated i the CBD. Mrever, mst

ce buildis that have cme lie ver the past ew years were

lcated i this area ad they have all icreased their rets t be hiher

tha lder buildis.



rental rate by location

rental rateS, Q2 2012

rental rate by grade, Q2 2012


Rets remaied stable acrss the bard r Q2 2012. This refects the

ctiued lac siicat mvemet i the maret. over the past

three years there has bee discerable chae i ce rets r

grade A ces. This refects the bacdrp plitical ad ecmic

ucertaity. Rates are still uderpied by the lac siicat supply

duri this perid.


7/11

Surce : Clliers Iteratial Thailad Research

hiStorical rental rate in three main locationS, Q1 2010 Q2 2012

The nrther Frie ctiues t ede the outer City i terms ret.

The dierece is eliible. The CBD cmmads the hihest rets by ar.

The nrther Frie ad outer CBD chare arud 75% the CBD

averae ret.



hiStorical rental rate by grade


The rets grade A ce buildis have remaied stable sice 2007,

while grade B ce buildis recrded a drp apprximately 5 - 6%.

Sme ladlrds er mre avurable terms ad icetives r teats

t maitai ccupacy duri dicult ecmic times, especially r

small busiesses, ad this has adversely aected grade C retals. As

grade C buildis ae, their imae ad acilities becme icreasily

uattractive t teats. owers shuld csider siicat revatis

i a similar ashi t the retail sectr i rder t maitai

cmpetitiveess.



Lcati is still the ey actr that aects rets r cmparable prperties.

oces lcated clse t mass trasit statis cmmad a premium ad

may are ewer buildis that wuld usually cmmad hiher rets

ayway. The sharpest dierece ccurs i grade C buildis with

arud a 40% dierece. Mass trasit ly explais part a ce

buildis appeal. Access t expressways ad ther supprti acilities

i the area culd be equal ly r eve mre imprtat r teats.

Surce : Clliers Iteratial Thailad Research

rental rate of office buildingS in bangkok by diStance from btS / mrt (metreS), Q 2 2012


outlook

The nrther Frie area will becme a ew busiess area i the ear

uture with mst ew ce buildis i the pipelie lcated al

Ratchadapise Rad. Mrever, this area als has shppi malls,

etertaimet zes, hypermarets, ce buildis ad ther supprti

acilities, as well as MRT statis.

The ce buildi maret is healthier tha last year due t icreasi

demad ad limited ew supply. new iteratial cmpaies are

eteri Thailad ad als may existi cmpaies are expadi r

plai t expad their ces. The prspect the AEC i 2015 ad the

pei up Myamar are als a actrs i raisi demad r ce

buildis i Ba because Thailad is see as a icreasily

imprtat reial cetre r cmpaies with peratis i the sub-

rei, that is Myamar, Las ad Cambdia.

The ew Ba Tw Pla aects t ly the cdmiium sectr

but als the ce maret. The latest drat 24 May 2012 des t

permit ce buildis larer tha 10,000 sq m rads arrwer tha

30 m i certai lcatis Ba althuh these are permitted i

ther lcatis utside the CBD ad outer CBD area. This idicates that

the ew tw pla is tryi t expad the busiess area t late Suhumvit,

Ratchadapise ad Phahythi Rads. The Departmet City

Plai Ba Metrplita Admiistrati has still t alised the

ew Ba Tw Pla as the secd quarter 2012. A

aucemet is expected by 21 Auust 2012, althuh it culd later be

revised ad alised withi this year r ext.



appendiX





office Zoning

The eeral lac zi restrictis i Ba has led t the existece

siicat ce supply i a wide rae lcatis i the city ad t

hw the maret perceives that the CBD has evlved ver the past 20

years. The riial CBD was Silm ad Surawse Rads, hme t

the vibrat ld maret ad ther tradi busiesses. The develpmet

mder ce buildis i the 1990s with larer fr plates culd t

be accmmdated i this area, ad the CBD bea t tae shape i the

easter secti Sathr Rad.

While Suhumvit Rad up t Ase is primarily perceived as a

etertaimet ad residetial area, a lare umber grade A buildis

spra up i the 1990s ad als i the past ew years. It is therere

csidered part the CBD. As a wri deiti, the CBD, r the

purpses ce classicati, is where a siicat umber grade

A ce buildis are lcated. As such, the ld CBD is w csidered

the outer CBD, icludi Petchburi Rad where mre grade B ces

are lcated. over time, this structure culd evlve.


11/11


collierS international thailand

management team

oFFICE & InDUSTRIAL SERVICES

narum Rdsiravraphat | Assciate Directr

PRoJECT SALES & MARkETIng

Mchai orawpaisa | Assciate Directr

RESIDEnTIAL SALES & LEASIng

napaswa Chtephard | Maaer

RESEARCH

Ty Pic | Assciate Directr

Surachet kcheep | Seir Maaer

RETAIL SERVICES

Asharawa Wachaat | Assciate Directr

ADVISoRY SERVICES | HoSPITALITY

Jea Marc garret | Directr

ADVISoRY SERVICES

napatr Tiechutima | Assciate Directr

REAL ESTATE MAnAgEMEnT SERVICES

Prasert Saiphrawa | Seir Maaer

InVESTMEnT SERVICES

nuar Suwatiul | Assciate Directr

Wasa Rattaaijjauul | Seir Maaer

VALUATIon & ADVISoRY SERVICES

Phachsau Phrmthaauta | Directr

Waida Susuwa | Assciate Directr

PATTAYA oFFICE

Mar Bwli | Seir Sales Maaer

Supaee Starjitsi | Seir Busiess Develpmet

Maaer / oce Maaer

HUA HIn oFFICE

Suchai kaachai | Seir Maaer

reSearcher:

ThailadSurachet kcheepSeir Maaer | Research

email [email protected]

522 ces i 62 cutries 6 ctiets

This reprt ad ther research materials may be ud ur website at www.clliers.c.th. Questisrelated t irmati herei shuld be directed t the Research Departmet at the umber idicatedabve. This dcumet has bee prepared by Clliers Iteratial r advertisi ad eeralirmati ly. Clliers Iteratial maes uaratees, represetatis r warraties ay id,expressed r implied, reardi the irmati icludi, but t limited t, warraties ctet,accuracy ad reliability. Ay iterested party shuld udertae their w iquiries as t the accuracy the irmati. Clliers Iteratial excludes uequivcally all ierred r implied terms, cditisad warraties arisi ut this dcumet ad excludes all liability r lss ad damaes ar isi thererm. Clliers Iteratial is a wrldwide aliati idepedetly wed ad perated cmpaies.

A leader i real estate csultacy wrldwide

2nd most recognized commercial real estate brandlbally

2d larest prperty maaer

1.25 billi square eet uder maaemet

over 12,300 pressials

coLLierS internationaL thaiLand:

B of17/F Plechit Ceter,2 Suhumvit Rad, kltey,Ba 10110 Thailad

tel +662 656 7000

faX +662 656 7111

[email protected]

Py of519/4-5, Pattaya Secd Rad (oppsite Cetral FestivalPattaya Beach), nprue, Balamu, Chburi 20150

tel +6638 427 771

faX +6638 427 772

email [email protected] h of27/7, Petchaasem Rad, Hua Hi,Prachuap khiri kha 77110 Thailad

tel +6632 530 177

faX +6632 530 677

email [email protected]

Accelerati success.

bangkok office market report q2 2012

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