Logo of Phnom Penh Post newspaper Phnom Penh Post - iCon office block looks to counter downturn

iCon office block looks to counter downturn

iCon office block looks to counter downturn

FOUR companies have signed up to move into the new eight-storey iCON office block in Phnom Penh, which is defying the rental market slump, the owner of the building told the Post Wednesday.

The latest firm to move into the 12,000-square-metre building on Norodom Boulevard that was completed last month is pharmaceuticals multinational Bayer, which moved in on Friday, according to a statement from the German firm.

Building owner Darryl Eang, who would not disclose the cost of the building, said he is in talks to fill more of the offices, which are rented out at US$10 per square metre, much lower than the price of competing high-end office space.

“We only have 12,000 square metres to provide to the customers. This is a very small amount, and we don’t think that it will be a problem to rent out,” he said Wednesday.

The owner added that he is not advertising the office space and is instead relying on word of mouth to draw in potential renters.

iCON’s move contrasts with that of Phnom Penh landmark Canadia Tower, which is asking $25 a square metre. Last month, the Post reported that only two companies have rented space, on its ground floor.

According to Canadia Tower’s brochure, it has 12 floors of offices available for rent, which represent just over 10,724 square metres of work space.

In December, Daniel Parkes of property firm CB Richard Ellis predicted that demand for office space in the capital would grow within the next five years. Office space in the capital is set to almost double by 2013 based on the current projects under way, he added.

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