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

  • Cambodia on the verge of national tragedy, WHO warns

    The World Health Organisation (WHO) in Cambodia warned that the country had reached another critical point amid a sudden, huge surge in community transmission cases and deaths. “We stand on the brink of a national tragedy because of Covid-19. Despite our best efforts, we are

  • Phnom Penh placed in two-week lockdown

    The government has decided to place Phnom Penh in lockdown for two weeks, effective April 14 midnight through April 28, as Cambodia continues to grapple with the ongoing community outbreak of Covid-19, which has seen no sign of subsiding. According to a directive signed by Prime Minister

  • Vaccination open to foreigners in Cambodia

    The Ministry of Health on April 8 issued an announcement on Covid-19 vaccination for foreigners residing and working in Cambodia, directing the Ministry of Labour and Vocational Training and local authorities to register them. Health minister Mam Bun Heng, who is also head of the inter-ministerial

  • Cambodia gears up for muted New Year festival

    The recent curfew and restrictions imposed in the capital and other Covid-19 hotspots were intended to break the chain of transmission, Ministry of Health spokeswoman Or Vandine said as municipal and provincial authorities issued new directives banning certain activities during the upcoming Khmer New Year

  • Culture ministry: Take Tuol Sleng photos down, or else

    The Ministry of Culture and Fine Arts has told Irish photographer Matt Loughrey to take down the photos of Khmer Rouge victims at Tuol Sleng Genocidal Museum which he allegedly colourised and altered to show them smiling. The ministry said Loughrey's work is unacceptable, affecting

  • Covid-19 vaccination now obligatory

    Prime Minister Hun Sen on April 11 issued a sub-decree making Covid-19 vaccination compulsory for individuals unless they have a medical certificate proving they have pre-existing health conditions that prevent them from doing so. «This applies to all members of the armed forces and civil servants