How Location Affects Office Rent in Bangkok
Bangkok's construction industry is yet to meet the high demand for quality office space. With increased demand, occupancy rates have gone up, creating a construction boom for new office space. The high demand has contributed to the rising office rental rates in recent times. According to industry analysts, office rent in Bangkok's central business district rose by about nine percent in 2012. This mainly affected the Grade A buildings in the CBD. Despite the increase, office rental rates in Bangkok are still the lowest compared to cities other Asia Pacific countries.
Location is a major determinant of office rent in Bangkok. Typically, offices in the central business district tend to attract premium rental rates because of their prime location for business and the general higher quality of facilities and services.
Central Business District
In Bangkok, the biggest share of offices, especially those in grade A buildings are located in the CBD. The northern fringe and the outer CBD areas follow respectively. Office space is distributed to other areas throughout the city including the areas near mass transit systems to the suburbs. Rental rates in Thailand are normally charged per square meter. On average, monthly office rent in Bangkok in the CBD is about 770 baht per square meter.
Bangkok's CBD comprises Sukhumvit, Silom, Langsuan, Sathorn north-south, Rama4, Ratchaprarop, Phayathai, Patumwan, Surawong and Siam areas among others. Office rental rates in these areas can cost anything between 450 and 1,000 baht per square meter.
The Outer CBD
Rents in the outer areas of the central business district including the China Town area also vary. However, the rates are relatively lower than in the CBD. It costs between 250 and 550 baht to rent an office in this area. Office units located in areas close to mass transit transport systems (within a distance of about 250 meters) are the most expensive to rent. These areas include the BTS Sky train routes such as Sanam Pao, Thonglor, Siam Square, Ploenchit, Asoke, National Stadium, Sala Daeng, and Taksin Bridge.
Mass Transit Routes and Expressways
The MRT subway routes include Bang Sue, Sam Yan, Khlong Toei, Chatuchak Park, Phetchaburi, Phra Ram 9 and Sutthisan. Office rental prices are generally higher than those of office other areas by between 35 and 40 percent. For grade C buildings, the difference can be as high as 50 percent.
Non CBD Areas
In other downtown areas that are out of Bangkok's central business district, office rental prices are relatively lower. In areas such as the Old City Area, Rama 3, Kaset, New phetchaburi and Vipawadee, office rent rates range between 200 and 400 baht per square meter.
Suburbs
In the suburban areas and provinces located further out of the city, the price of renting an office varies between about 150 and 300 baht per square meter.
Besides the location, other factors such as price of land, increased investment in the country and higher wages as a result of economic growth also affect the cost of renting an office in Bangkok. This has prompted the construction industry to scale up the development of additional office space to meet the high demand. It is projected that an about 290,000 square meters of office space will be added in Bangkok by 2014
Location is a major determinant of office rent in Bangkok. Typically, offices in the central business district tend to attract premium rental rates because of their prime location for business and the general higher quality of facilities and services.
Central Business District
In Bangkok, the biggest share of offices, especially those in grade A buildings are located in the CBD. The northern fringe and the outer CBD areas follow respectively. Office space is distributed to other areas throughout the city including the areas near mass transit systems to the suburbs. Rental rates in Thailand are normally charged per square meter. On average, monthly office rent in Bangkok in the CBD is about 770 baht per square meter.
Bangkok's CBD comprises Sukhumvit, Silom, Langsuan, Sathorn north-south, Rama4, Ratchaprarop, Phayathai, Patumwan, Surawong and Siam areas among others. Office rental rates in these areas can cost anything between 450 and 1,000 baht per square meter.
The Outer CBD
Rents in the outer areas of the central business district including the China Town area also vary. However, the rates are relatively lower than in the CBD. It costs between 250 and 550 baht to rent an office in this area. Office units located in areas close to mass transit transport systems (within a distance of about 250 meters) are the most expensive to rent. These areas include the BTS Sky train routes such as Sanam Pao, Thonglor, Siam Square, Ploenchit, Asoke, National Stadium, Sala Daeng, and Taksin Bridge.
Mass Transit Routes and Expressways
The MRT subway routes include Bang Sue, Sam Yan, Khlong Toei, Chatuchak Park, Phetchaburi, Phra Ram 9 and Sutthisan. Office rental prices are generally higher than those of office other areas by between 35 and 40 percent. For grade C buildings, the difference can be as high as 50 percent.
Non CBD Areas
In other downtown areas that are out of Bangkok's central business district, office rental prices are relatively lower. In areas such as the Old City Area, Rama 3, Kaset, New phetchaburi and Vipawadee, office rent rates range between 200 and 400 baht per square meter.
Suburbs
In the suburban areas and provinces located further out of the city, the price of renting an office varies between about 150 and 300 baht per square meter.
Besides the location, other factors such as price of land, increased investment in the country and higher wages as a result of economic growth also affect the cost of renting an office in Bangkok. This has prompted the construction industry to scale up the development of additional office space to meet the high demand. It is projected that an about 290,000 square meters of office space will be added in Bangkok by 2014
