The deterioration of Bangkok’s office rental rates arrested in the first quarter according to Knight Frank Thailand’s research. Bangkok’s overall vacancy rate now stands at 12.37 per cent, up from 12.07 per cent in the fourth quarter 2009, with the highest vacancy rates recorded in the market’s second largest sector by size (Grade A), which is a now reporting an average vacancy rate of 14.91 per cent.
This indicates that there is a decline in demand due, the company believed, to the uncertainty created by ongoing political unrest, but the pace of this decline has been slowing.
Grade A and Grade C rents showed very minor falls from the fourth quarter 2009, standing at Bt634 and Bt349.9 per square meter respectively and even a very slight improvement in the resilient Grade B sector, which saw rents grow from Bt469.58 to Bt497 per square meter, effectively halting the decline in the overall average rental rates that we witnessed throughout 2009.
via BKK sees lower office rents.
