Logo of Phnom Penh Post newspaper Phnom Penh Post - Demand for office space on the rise



Demand for office space on the rise

Content image - Phnom Penh Post
Vattanac Tower, pictured above, has attracted more tenants this year, thereby reducing occupancy vacancy rates. PHOTO SUPPLIED

Demand for office space on the rise

The demand for office space is anticipated to surge this year after a lacklustre 2015; however, this is in line with rising supply.

Lim Pusithavrith, a leasing management officer at Vattanac Tower, said recently that the demand for office space would rise significantly this year because of the flow of new foreign and local companies.

The demand for office space in Vattanac Tower has increased from 25 to 30 per cent in the previous 12 months, with the occupancy rate moving to around 50 per cent.

He continued that the developer aims to increase the occupancy rate for office space to up to 80 per cent by the end of 2016.

Vattanac office space is priced at $28 to $38 per square metre, plus $5 for management service fee.

“The company is not afraid of competition because we have partner companies renting the space and they play a role in recommending other new companies to rent our Grade A office space in Phnom Penh,” Pusithavrith added.

Nonetheless, Hun Menghieng, a manager at VTrust Property, who is currently managing three office buildings in Phnom Penh, said the office space rental rate is not better than last year.

“We have only seen a 10 to 15 per cent increase at VTrust Tower,” he said.

He said the office space market is becoming highly competitive because of the increase in office space supply and the slow trickle of new customers.

Thida Ann, associate director of CBRE Cambodia, said the demand for office space had risen this year due to the increasing number of banks, insurance companies and foreign companies in the market.

However, while demand has increased, so too has supply.

According to Ann, 2016 will see an additional four to five Grade B and Grade C office buildings entering the market.

MOST VIEWED

  • PM reflects on shoe throwing: Free speech or act of violence?

    Prime Minister Hun Sen on May 17 questioned whether a man who threw a shoe at him while he was in the US was exercising freedom of expression or if it was an act of hostility. Hun Sen was referring to an incident last week when

  • Chinese tourists 2.0 – Coming anytime soon?

    Regional tourism is grappling with the absence of the prolific travellers and big spenders – the Chinese tourists. Cambodia, which has welcomed over two million Chinese tourists before Covid-19, is reeling from the economic loss despite being the first to fully open last November ‘To put

  • Prime Minister Hun Sen warmly welcomed by president Biden

    Prime Minister Hun Sen, as ASEAN chair, and other ASEAN leaders were warmly welcomed by US president Joe Biden as the ASEAN-US summit May 12-13 kicked off today in Washington. “This evening, I welcomed ASEAN leaders to the White House for the first time in

  • Prime Minister Hun Sen invites US president to attend summit in Cambodia

    Prime Minister Hun Sen personally invited US President Joe Biden to attend the ASEAN-US Summit which is set to be held in Cambodia in November, as ASEAN and the US are expected to upgrade their strategic partnership to a ‘comprehensive strategic partnership’, according to Prime

  • Hun Sen: Stop Russia sanctions

    Prime Minister Hun Sen said sanctions against Russia as a result of its military offensive in Ukraine should be stopped as they have produced no tangible results, and predicted that a global food crisis would ensue in 2023 as a consequence. Speaking to an audience at

  • Pub Street on the cards for Battambang

    The Battambang Provincial Authority has announced that it is considering establishing a Pub Street in the area around the heritage buildings in Battambang town in a bid to attract more tourists. Battambang provincial governor Sok Lou told The Post that the establishment of a Pub