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Office rentals see surge in 1st quarter

Recently opened office space at Vattanac Tower is among a rising number of offerings coming onto market in response to demand.
Recently opened office space at Vattanac Tower is among a rising number of offerings coming onto market in response to demand. CHRIS TAYLOR

Office rentals see surge in 1st quarter

Increasingly large numbers of investors flocking to the Cambodian property market boosted demand for office space in the first quarter of this year compared with the same period last year.

The general manager of Asia Real Estate, Po Eavkong, said analysis by his company re-vealed that demand for Grade-A office space had increased between 10 and 15 per cent, while demand for Grade-B office space had in-creased 20 to 25 per cent. Demand for Grade-C office space increased the most this year compared with last year.

“Recently, investors have been coming to Cambodia in increasing numbers, and that is reflected in the number of companies registering with the Ministry of Commerce,” he said. “Most of the investors are from Singapore, Malaysia, Japan and also Korea. They need grades A and B office space. Grade C office space is more popular among local investors.”

Eavkong said he expected that demand for office space would continue to increase in the second quarter of this year.

Kuy Vat, president and CEO of VTrust Group, which manages Parkway Square and another office space behind Peace Palace, agreed that demand for office space in the first quarter this year increased compared to last year. He said that around 10 companies had recently leased office space from VTrust, and that most were local businesses.

Vat added that he expected increased demand to bring the number of companies that VTrust leased offices to would soon grow to close on 200.

“New investors who are coming into Cambodia tend to be unconcerned about the political situation, putting business first,” he said.

General manager of Canadia Tower, Thab Rithy said leased office space at Canadia Tower had increased by around 15 per cent this quarter compared with the first quarter last year.

Office space at Phnom Penh Tower is enjoying close to full occupancy.
Office space at Phnom Penh Tower is enjoying close to full occupancy. MENEA HONG Hong Menea

According to Rithy, the tower leased out some 500 to 600 square metres of office space in the first quarter of this year, bringing the total amount of office space rented out in Canadia Tower to 85 per cent.

Office space in the Canadia Tower is still available from 16th floor upwards at $25 per square metre, with an additional $5-per-square-metre service and maintenance fee.

“We expect that demand for office space will continue to increase because new companies are coming into the market,” he said.

Meanwhile, Phnom Penh Tower management reported that its office space was close to fully occupied.

According to Phnom Penh Tower marketing manager Hang Yuwan, office space rentals were stable in the first quarter of this year because clients required more space than the tower had to offer.

He added that current customers were largely from Japan, Malaysia, Europe and the US.

Up to 95 per cent of the tower was occupied, Yuwan said, adding that the office spaces remaining were 86, 135 and 400 square metres, and were priced variously at $19, $20 and $23 per square metre.

In contrast, however, Nuon Rithy, general manager of Bunna Reality Group, said demand for office space in the first quarter remained relatively stable because many investors were taking a wait-and-see approach to the political situation, while others have been waiting for availability of office space at Vattanac Tower, which is now open and has Grade A offices and ample parking.

Rithy said that, for many new investors, Phnom Penh’s Grade- B and Grade-C office buildings were inadequate because they lack space for parking.

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