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Q3 sees 5,600sqm more office space leased in Phnom Penh

Content image - Phnom Penh Post
The Vattanac Tower is an office building located along Monivong Boulevard in Daun Penh district’s Wat Phnom commune. Hong Menea

Q3 sees 5,600sqm more office space leased in Phnom Penh

The volume of leased office space in Phnom Penh grew by around 5,600sqm in the third quarter of this year, up 1.56 per cent quarter-on-quarter, a third quarter report from real estate agency CBRE Cambodia said.

As of the end of this year’s third quarter, total leased office space in the capital hit 364,600sqm, up from 359,000sqm in the second quarter, of which Grade A spaces accounted for 14 per cent, Grade B 29 per cent and Grade C 56 per cent, the report said.

Meanwhile, the occupancy rate stands at 80 per cent for Grade A offices, 81 per cent for Grade B and 89 per cent for Grade C.

Leasing prices for Grade A offices are on average $29.50 per square metre, Grade B are $22.80 and Grade C $13. Prices increased only one per cent year-on-year in the third quarter.

CBRE Cambodia Research and Consulting Department manager and senior analyst Kim Kinkesa told The Post on Wednesday that while new office buildings have been completed and entered the market in the first nine months of this year, prices and occupancy rates are not much changed.

“I expect the rental office market situation to be positive in the fourth quarter of this year,” she said.

Bun Kheam, general manager of the 7,000sqm City Tower along Mao Tse Toung Boulevard, said the office building’s occupancy rate increased from 85 per cent in the second quarter to 95 per cent in the third.

However, he said prices have not increased as much, with rents price ranging from $15 to $18 per square metre.

“I think that the market for office buildings in Phnom Penh is still good, with the occupancy rate increasing almost everywhere,” Kheam said.

In the fourth quarter of this year, four Grade B office buildings totalling 36,000sqm are set to be launched – the Point Community Mall and Office Centre; the Fortune Tower; Chip Mong Bak Touk Commercial Centre; and The Commune, the report said.

In the first 10 months of this year, the total value of approved investment in the Kingdom’s construction industry reached $7.584 billion, a 51.97 per cent increase on the same period last year, at $4.99 billion, data from the Ministry of Land Management, Urban Planning and Construction shows.

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