Member News
Office leasing market continues to expand J
‘much of the increase in vacancy is being driven by negative net absorption in non-prime grade buildings, particularly those that have limited or no access to mass transit which continues to be a major relocation driver for tenants’.
LL is reporting buoyant leasing activity in the Bangkok office market despite continuing economic uncertainties for the nation as a whole. Miss Yupa Sathienpabayut, Director of Office Leasing at JLL, said “Recent large leasing transactions in Bangkok are concentrated in prime office buildings, despite higher rents. Many of these transactions are relocations which are contributing to rising vacancies in non-prime grade buildings.” According to JLL’s Thailand Property Intelligence Centre the average vacancy level for all grade office space across Bangkok increased to 9.4 percent in the first quarter of
Miss Yupa Sathienpabayut
this year from nine percent at the end of 2015. The Centre states that
“To retain or increase competitiveness, landlords of non-prime grade buildings have become more flexible when negotiating lease terms with existing and prospective tenants,” added Miss Sathienpabayut. “Some of them offer more incentives such as more parking spaces, an increase in a fixed cap rate on renewal and/ or longer rent-free periods for new tenants. However, very few of them have adopted a rental reduction strategy at this point.”
Standard Chartered Bank (Thai), Krungsri (Bank of Ayudhya PCL) and TMB as Joint Lead Underwriters received the ‘Frontier Markets Issue of the Year’ at the International Financing Review Asia annual awards. The award recognises the outstanding achievement and success of the debentures of EDL-Generation Public Company, Laos PDR’s first overseas corporate bond. The awards ceremony was held in Hong Kong. The Link
Issue 2/2016
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