Office space occupancy in the capital in the second quarter of this year rose slower than the first. A real estate firm CBRE Cambodia reported that the market could be reaching saturation. The report showed that office rentals have topped 293,000 square metres. Total office space in Phnom Penh at the financial year’s midpoint stood at just over 335,00 square metres. There was no new office space for lease in the second quarter, while in the first, a new 14,350 square metres space was added to the market. International companies seeking a presence in Cambodia as well as the growth of local start-ups is fuelling the demand for office space, but experts say rentals are being held static by a supply of new development.
When the local media company Quantum Communications went looking for a new home earlier this year, they found they were very much in the driving seat. Not only did they get a bigger office but CEO Julian Rake said he was also surprised to discover rents had come down. Figures compiled by CBRE show that available office space in Phnom Penh rose by over 60,000 square metres to 335,000 in the first quarter of 2018 compared to last year, but rentals dipped marginally to $15.1 per square foot from $15.2.
Around 90,000 square metres of new office space will come on to the market before the end of the year, estimates CBRE. However underlying figures do not tell the full story of the office space rental market. Availability, vacancies, demand and cost varied across classes of property, with so-called “Grade B” premises – with rentals in the range of $14 – $21 per square metres said realters.
You can find out more details also on Office Rental Phnom Penh website.