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.http://www.phnompenhpost.com/post-property/capitals-office-space-rents-rise