Logo of Phnom Penh Post newspaper Phnom Penh Post - Capital’s office space rents on rise



Capital’s office space rents on rise

Content image - Phnom Penh Post
Vattanac Tower is one of only two Grade A office buildings in Phnom Penh. Hong Menea

Capital’s office space rents on rise

Rental of office space in the capital saw a slight increase in the third quarter of this year compared to the second quarter, with a total of more than 86 per cent of spaces occupied, according to a CBRE Cambodia report.

It said the newly-constructed Keystone Office Building provided more than 15,000sqm of office space in the third quarter, bringing the total area of office spaces in Phnom Penh to 360,000sqm – up 4.7 per cent from the quarter before.

Grade A office spaces have an occupancy rate of about 68 per cent, Grade B (88 per cent) and Grade C (92 per cent).

Third quarter leasing prices were unchanged compared to the second quarter, with Grade A ranging between $28 to $38 per square metre, Grade B from $18 to $28, and Grade C from $10 to $18.

CBRE Cambodia analyst Kimsea Chea said economic growth and inflows of foreign companies have pushed the demand for office spaces in the capital, especially grade B offices.

“At present, Grade A offices in Cambodia do not seem to be very occupied, but this number will increase in the future."

“Over the next three to five years, the number of [occupied] Grade A offices will increase as many international companies invest in Cambodia,” he said.

Currently, there are only two Grade A office buildings in Phnom Penh – Vattanac Tower and Exchange Square – while many office space buildings under development are Grade B, the report said.

James Hodge, surveyor and head of Professional Services at CBRE Cambodia, Keystone’s marketing agency, said that the grade B office market is the best. He said the Keystone Office Building launched 50 per cent of its grade B office space in July.

He said most of the building’s customers are companies from abroad. “Investment in Grade B offices is high in Phnom Penh now. The market will be better in the future,” he said.

CBRE Cambodia estimated that in the fourth quarter, there will be four other Grade B offices to be put up for rent, including the East Commercial Centre, Diamond Twin, E.SUN Tower and Elysee. The new supply will bring the office space in Phnom Penh to a total of about 400,000sqm.

The Ministry of Land Management, Urban Planning and Construction said building investment capital in the first nine months of this year was worth over $4.8 billion. It was $5.6 billion in the same period last year or a 14.47 per cent decrease.

MOST VIEWED

  • Two luxury hotels latest quarantine options for inbound travellers

    The Inter-Ministerial Committee to Combat Covid-19 has designated two luxury hotels as alternative quarantine options for travellers who wish to enter Cambodia through Phnom Penh International Airport – Sokha Phnom Penh Hotel & Residence and the Courtyard by Marriott Phnom Penh. In a notice detailing guidelines issued

  • Visa A holders get to quarantine at Himawari Hotel

    The Ministry of Health has permitted foreign diplomats, UN and International NGO officials to undergo quarantine at Himawari Hotel in the capital in case they do not have a separate place suitable for this purpose, but the government would not be responsible for the expenses.

  • Jabs for kids bring hope for school reopenings

    Cambodia is tentatively planning to reopen schools – at least at the secondary level – when the vaccination of children aged 12-17 is completed, even though daily transmissions and deaths in other age groups remain high. Schools across the country have been suspended since March 20, one month

  • China denies Mekong hacking

    As the US and its allies joined hands last week to expose what they allege to be China’s Ministry of State Security’s malicious cyber activities around the world, the attention also turned to Cambodia with the US Department of Justice claiming that four

  • Governor: Covid subsides in capital

    Phnom Penh municipal governor Khuong Sreng said the Covid-19 situation in the capital’s 14 districts has eased, with only two districts still recording a high number of infections. “Transmission cases in all districts are dropping, though they are relatively higher Meanchey and Por Sen Chey.

  • Hun Sen: Get 12-17 age group ready for Covid jabs

    Prime Minister Hun Sen has told parents of children aged 12-17 in Phnom Penh and the provinces of Kandal and Preah Sihanouk to get them ready for vaccinations soon. “There is a need to vaccinate children and youths aged 12 to 17. According to the statistics provided