The Bangkok office market report for Q2 2011 found that:
- Metrics for the office market remained stable compared to Q1 2011, with around 100,000 sqm of new office space entering the CBD market in H2 2011.
- Occupancy rates were largely unchanged from Q1 2011 as businesses awaited the election results and the economic situation in Europe.
- Rental rates remained stable across all grades of office buildings due to a lack of significant movement in the market.
- Future demand drivers include increasing investment in manufacturing and a potential rebound in tourism, but Q3 2011 will be pivotal as the election results are determined.
Indian economic growth remained sluggish through the end of 2012, however we expect industrial activity to improve, thanks to recent government actions. These include the government-proposed National Investment and Manufacturing Zones and the newly approved 51% foreign direct investment in multi-brand retail trading.
Indian economic growth remained sluggish through the end of 2012, however we expect industrial activity to improve, thanks to recent government actions. These include the government-proposed National Investment and Manufacturing Zones and the newly approved 51% foreign direct investment in multi-brand retail trading.
Tenants seeking value for money
Summary
• Lower rental rates buoy occupancy levels
• Limited new entrants due to political situation
• Gradual reform process positive for existing businesses
• Continued move towards dedicated office space
A MOVE TO BETTER QUALITY FOR TENANTS
Summary
• Growing demand from multinationals for better quality offices
• Limited prime locations
• Supply surge in 2016 still yet to be fully absorbed
• Rental pressures due to demand/supply imbalances
• Belt & Road Initiative (BRI) could spur demand in next decade
The report will provide you a year-end review of the Mumbai office market and the prognosis for 2014. The Highlights of the report are as follows:
• The prevailing sentiment in 2013 was one of caution due to uninspiring economic conditions.
• Cumulative new leasing of office space in Mumbai in 2013 was 4.76 MN SF
• The BFSI and IT/ITeS were the major occupiers accounting for 46% of the total absorption.
• In 2014, Landlords will be willing to offer greater incentives, rather than lowering base rentals.
• Occupiers holding decisions in 2013 are likely take up new space in 2014 post the national elections hoping for a more inspiring economic trend and improvement of sentiment
For More information:
Please contact
Surabhi Arora | Associate Director | Research
Surabhi.arora@colliers.com
The subject matter of this paper is the analysis and evaluation of the business and financial performance of the Kier Group Plc over the three year period 2012–2014. The company is analysed against the comparator undertaking Balfour Beatty Plc and the average numbers of the UK and international construction industry. The financial analysis is performed over the range of financial ratios commonly applied in undergraduate and graduate business studies. For the purposes of the business analysis, the SWOT Model and the PESTEL Framework are used. The research reveals that due to diversified divisions and a high market share the Kier Group Plc is able to generate growing revenues, albeit at the high administrative costs and with an extending operating cycle. Further, revenue growth is not accompanied by improved liquidity. The growing social diversification among residential customers, the steady technological change and the increasing demand for sustainable construction place additional challenges to the Group. The results obtained are of interest for the construction industry researchers, financial analysts and financial and business analysis students.
Economic Overview
The economy of Cambodia is expected to grow by 6.7% in 2013 and 7% in 2014. The forecast is based on the expected increases in agriculture, foreign direct investments in garment sector and a growing tourism industry. Regarding property sector, investments in construction grew by 123% with a total of US$1.94 billion during the first half of 2013, up from US$870 in the same period last year. There have been 571 construction companies in operations in Cambodia. The government approved $2.1 billion of construction projects in 2012, while it was only $1.2 billion in 2011. Experts are optimistic towards real estate market by the coming years, though they agree the stagnancy prior to, in time of, and post-national election.
White Paper Colliers International Q2 2014: "...Belgrade represents one of two south-Eastern countries in the CEE region - Bulgaria and Serbia - which are reported to have the highest percentage of graduates holding technical degrees in IT and engineering across the CEE region..."
The serviced apartment sector continued to show further signs of recovery from the lows of Q2 2010. Overall rental rates and occupancy were up q/q.
It appears that the lingering effects of the April/May events of 2010 which directly impacted areas seems to be dissipating rapidly with Central Lumpini and Central CBD recording very positive figures for Q1 2011.
However this is no time for complacency as the sector faces another significant infusion of supply over the course of the year that will put pressure on the gains made over the past six months.
The earthquake and tsunami in Japan may have a small short term negative influence, however in the longer term expected increased Japanese investment into Thailand will also positively affect the serviced apartment sector.
Supply growth slowing q/q for Q1 2011 with just around 14,180 sq m being completed, all being community malls.
Rentals rates escalated q/q by around 4% and take up increased by approximately 1% for the same period. Consumer confidence and spending over the past year are positively affecting the retail sector as a whole.
The trend is not only the development of new retail centres but the renovation of older buildings with outdated retail designs and mix. This flight to the top can only be of benefit to customers and the sector as a whole.
New launches in Q1 2011 fell to a more sustainable level following the frenetic previous six months. Concerns of an overheating property market have been allayed as a result. The condominium market has begun the process of consolidation.
Within urban Bangkok, the Northern and Southern fringes led the way in new launches with around 15% each for the total of the whole of Bangkok. The Suburban area accounted for around 56% of the total.
Around 3,500 units were supplied in Q1 2011, a slight decrease q/q. For the past two years, quarterly additions to new supply have been remarkably stable.
The earthquake in Chiang Mai in March 2011 caused many potential buyers to pay attention to the resilience of buildings to damage from such events. More may be required to address these concerns although Bangkok is far from areas prone to serious seismic activity.
Colliers International Research has just released the Asia Pac Office Market Overview 3Q 2012. The report provides real estate office market trends in Asia Pac region. The office sector in the Asia Pacific region continued to be challenging in 3Q 2012 with a slowing economic growth and the unresolved European debt crisis; market participants are holding positive views on market outlook but confidence is not as strong as the previous quarter. Looking ahead, the prospective trend of office rents in most cities will remain positive in the next 12 months, despite a substantial supply projected to enter the market in individual cities.
Tenants seeking value for money
Summary
• Lower rental rates buoy occupancy levels
• Limited new entrants due to political situation
• Gradual reform process positive for existing businesses
• Continued move towards dedicated office space
A MOVE TO BETTER QUALITY FOR TENANTS
Summary
• Growing demand from multinationals for better quality offices
• Limited prime locations
• Supply surge in 2016 still yet to be fully absorbed
• Rental pressures due to demand/supply imbalances
• Belt & Road Initiative (BRI) could spur demand in next decade
The report will provide you a year-end review of the Mumbai office market and the prognosis for 2014. The Highlights of the report are as follows:
• The prevailing sentiment in 2013 was one of caution due to uninspiring economic conditions.
• Cumulative new leasing of office space in Mumbai in 2013 was 4.76 MN SF
• The BFSI and IT/ITeS were the major occupiers accounting for 46% of the total absorption.
• In 2014, Landlords will be willing to offer greater incentives, rather than lowering base rentals.
• Occupiers holding decisions in 2013 are likely take up new space in 2014 post the national elections hoping for a more inspiring economic trend and improvement of sentiment
For More information:
Please contact
Surabhi Arora | Associate Director | Research
Surabhi.arora@colliers.com
The subject matter of this paper is the analysis and evaluation of the business and financial performance of the Kier Group Plc over the three year period 2012–2014. The company is analysed against the comparator undertaking Balfour Beatty Plc and the average numbers of the UK and international construction industry. The financial analysis is performed over the range of financial ratios commonly applied in undergraduate and graduate business studies. For the purposes of the business analysis, the SWOT Model and the PESTEL Framework are used. The research reveals that due to diversified divisions and a high market share the Kier Group Plc is able to generate growing revenues, albeit at the high administrative costs and with an extending operating cycle. Further, revenue growth is not accompanied by improved liquidity. The growing social diversification among residential customers, the steady technological change and the increasing demand for sustainable construction place additional challenges to the Group. The results obtained are of interest for the construction industry researchers, financial analysts and financial and business analysis students.
Economic Overview
The economy of Cambodia is expected to grow by 6.7% in 2013 and 7% in 2014. The forecast is based on the expected increases in agriculture, foreign direct investments in garment sector and a growing tourism industry. Regarding property sector, investments in construction grew by 123% with a total of US$1.94 billion during the first half of 2013, up from US$870 in the same period last year. There have been 571 construction companies in operations in Cambodia. The government approved $2.1 billion of construction projects in 2012, while it was only $1.2 billion in 2011. Experts are optimistic towards real estate market by the coming years, though they agree the stagnancy prior to, in time of, and post-national election.
White Paper Colliers International Q2 2014: "...Belgrade represents one of two south-Eastern countries in the CEE region - Bulgaria and Serbia - which are reported to have the highest percentage of graduates holding technical degrees in IT and engineering across the CEE region..."
The serviced apartment sector continued to show further signs of recovery from the lows of Q2 2010. Overall rental rates and occupancy were up q/q.
It appears that the lingering effects of the April/May events of 2010 which directly impacted areas seems to be dissipating rapidly with Central Lumpini and Central CBD recording very positive figures for Q1 2011.
However this is no time for complacency as the sector faces another significant infusion of supply over the course of the year that will put pressure on the gains made over the past six months.
The earthquake and tsunami in Japan may have a small short term negative influence, however in the longer term expected increased Japanese investment into Thailand will also positively affect the serviced apartment sector.
Supply growth slowing q/q for Q1 2011 with just around 14,180 sq m being completed, all being community malls.
Rentals rates escalated q/q by around 4% and take up increased by approximately 1% for the same period. Consumer confidence and spending over the past year are positively affecting the retail sector as a whole.
The trend is not only the development of new retail centres but the renovation of older buildings with outdated retail designs and mix. This flight to the top can only be of benefit to customers and the sector as a whole.
New launches in Q1 2011 fell to a more sustainable level following the frenetic previous six months. Concerns of an overheating property market have been allayed as a result. The condominium market has begun the process of consolidation.
Within urban Bangkok, the Northern and Southern fringes led the way in new launches with around 15% each for the total of the whole of Bangkok. The Suburban area accounted for around 56% of the total.
Around 3,500 units were supplied in Q1 2011, a slight decrease q/q. For the past two years, quarterly additions to new supply have been remarkably stable.
The earthquake in Chiang Mai in March 2011 caused many potential buyers to pay attention to the resilience of buildings to damage from such events. More may be required to address these concerns although Bangkok is far from areas prone to serious seismic activity.
Colliers International Research has just released the Asia Pac Office Market Overview 3Q 2012. The report provides real estate office market trends in Asia Pac region. The office sector in the Asia Pacific region continued to be challenging in 3Q 2012 with a slowing economic growth and the unresolved European debt crisis; market participants are holding positive views on market outlook but confidence is not as strong as the previous quarter. Looking ahead, the prospective trend of office rents in most cities will remain positive in the next 12 months, despite a substantial supply projected to enter the market in individual cities.
Hotels showed signs of recovery after a very problematic 2010 with occupancy rates higher in Q1 2011 than the previous quarter. Rates in Q1 2011 are comparable to those registered in Q1 2010.
The trend is still for hotels, especially in Luxury segment, to drive rates down in order to compete and this looks set to continue. A "risk discount" seems to be being applied in the case of hotels in areas deemed prone to further political strife.
Middle Eastern, Indian and Chinese visitors continue to be a growing presence in the Bangkok tourism industry especially during the low season. However traditional tourist markets, the mainstay of the Upper/Luxury segment (ULS), have begun to return to the city. The effect of the reduction in long term bookings after events last April and May appears to be abating.
Future supply in 2011 and 2012 will further test hotels’ ability to fill their rooms. Only continued strong growth in tourism can mitigate this situation. There will be no respite for the industry for some time to come.
Just over 4,700 units were supplied in Pattaya for 2010 representing a nearly 12 % increase from
2009. This was the greatest addition to supply since 1997.
New launches for 2010 amounted to just over 3,420 units. With take up and prices remaining
stable it would appear that future growth in condominium developments is running in tandem with
the growing popularity of the city as a residential resort area.
Pratumnak will be the new darling of the city as developers focus on the natural attraction of
Pratumnak hill with its position overlooking the city and access to Cosy Beach. Over 650 units
were launched in this area in the second half of 2010.
Many local developers are now firmly established in the city along with involvement from a number
of listed developers. Pattaya city is appearing on the radar screen for other Bangkok based
developers as the city turns into a world class destination and future commercial centre.
2010 was a difficult year for the hotel industry in Bangkok and 2011 promises more of the same for the Upper and Luxury segment. Find out more in this report.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
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The Roman Empire A Historical Colossus.pdfkaushalkr1407
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The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
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1. Q2 2011 | office
thailanD
Bangkok office Market
Bangkok Office Market
highlightS
the metrics for the office market in Q2 2011 remained almost the same as for Q1 2011.
a more positive trajectory for the office market could be in store for the future if the political
situation is perceived as being more stable.
around 100,000 sq m of office space is set to hit the cBD market in H2 2011.
maRket inDicatoRS initial strains expected from new supply in 2011 but a limited amount of new supply in the next
few years will lead to hardening of occupancy and rental rates.
Q1 2011 / Q2 2011
the aSean economic area comes closer to fruition in 2015 and the service sector can benefit
new Supply
from this.
DemanD
greek fiscal problems and contagion from other european countries remain a concern going
RentalS forward.
occupancy
Bangkok contains the most office supply for any city in the aSean area.
www.colliers.co.th
2. Bangkok office Market rePort | Q2 2011
hiStoRical Supply
total Supply aDDeD foR each five yeaR peRio
Source: colliers international thailand research
More than 70% of existing office buildings were supplied to the market two percent added in the five years following the effects of the asian
in the 1990’s which represented a period of economic growth on the financial crisis (afc). even with the pick up in the second half of the
back of a surge in manufacturing exports. this is in stark contrast to only decade, only 13% of supply came from the first decade of the century.
cumulative Supply in Bangkok
Source: colliers international thailand research
remark: e = estimated
the office market picked up in the second half of the 2000’s after the rejuvenated the office market to some degree including Q House Lumpini,
aftermath of the asian financial crisis when thailand resumed economic interchange 21, exchange tower, chamchuri Square and the column.
growth and confidence returned to the market. Between 2006 and 2008 Most of the new supply in 2009 came in the form of the energy complex
a number of large modern grade a buildings were added in the cBD that in the northern fringe.
COLLIERS INTERNATIONAL | P. 2
3. Bangkok office Market rePort | Q2 2011
aDDitional Supply foR each yeaR
Source: colliers international thailand research
as of Q2 2011, no new supply has been added this year due to political are expected to be completed with a total of 100,500 sq m and three
and economic uncertainties of the past few years and delays. However, offices with an aggregate of 30,500 sq m scheduled to be added in the
in the second half of 2011 two new office buildings located in the cBD northern fringe.
Supply By location, aS of Q2 2011
Source: colliers international thailand research
four zones are considered as having good access to the various mass cBD, which in itself covers a wide area.
transit lines while the others are some distance away. the Bangkok
office market is categorized by the level of dispersion of supply throughout the cBD is followed by the northern fringe area and outer cBD area
the city including the suburbs and only just over a third of supply is in the with 20% and 13% respectively.
COLLIERS INTERNATIONAL | P. 3
4. Bangkok office Market rePort | Q2 2011
Supply compaReD with otheR aSean citieS
office Supply in aSean citieS, aS of Q1 2011
Source: colliers international asia offices
Bangkok still leads the way when it comes to total office supply compared area outside the cBD that can be considered as a new concentrated
to the other main commercial cities in aSean; largely the legacy of the business centre such as Bonifacio global city in Manila, South Jakarta or
building boom prior to the asian financial crisis. it must also be stated Yeoudio in Seoul. the Bang na area with its access to the airport and
that other countries have secondary commercial centres which is not eastern Seaboard may be a future secondary business centre but access
the case in thailand. these would include Surabaya in indonesia, Hanoi to the BtS means the northern fringe will still remain the most popular
and Danang in Vietnam, and cebu in the Philippines. area for a non-cBD location.
in Bangkok while office supply occurs all over the city there is not one
futuRe Supply
futuRe Supply By location
Source: colliers international thailand research
nearly 270,000 sq m of office space is scheduled to be supplied in years will represent a less than 3.4% increase in total supply. this
Bangkok in the next three years in only four zones. five office buildings represents very little additional space for the market to absorb and points
are scheduled to be completed in the northern fringe area in the next the way to greater occupancy levels and a strengthening of rental rates
three years. overall expected additional new supply over the next three in the next few years.
COLLIERS INTERNATIONAL | P. 4
5. Bangkok office Market rePort | Q2 2011
DemanD – take up
occupancy Rate By location, Q2 2011
Source: colliers international thailand research
the Southern fringe area still commands the highest occupancy rate for occupancy rate recorded the second lowest figure due to the movement
Q2 2011 although it only represents 5% of total supply in Bangkok. the of some businesses to other areas. it must be stated that differences
outer city north area has the lowest occupancy rates and maybe a result between the areas are small however.
of the movement of airport operations away from Don Muang. the cBD
occupancy Rate in 3 locationS, Q1 2009 – Q2 2011
Source: colliers international thailand research
occupancy rates remained more or less the same for Q2 2011 q/q as and fiscal weakness in other countries. these uncertainties continue to
businesses still anticipate the election and its consequences coupled frustrate demand for office space.
with the economic situation in europe due to a potential greek default
COLLIERS INTERNATIONAL | P. 5
6. Bangkok office Market rePort | Q2 2011
actual anD futuRe eStimate of occupancy RateS
Source: colliers international thailand research
the effect of the expected introduction of Sathorn Square in H2 2011 is thailand predicts a gradual but sustained rise in occupancy rates in
likely to have a short term detrimental effect on occupancy after a 2012. this will in turn lead to a certain hardening of rental rates. this
recovery in Q1 2011. However with modest growth predicted for the analysis assumes that both domestic political concerns and the global
following two years and a limit on new supply, colliers international financial situation do not take a turn for the worse.
DemanD DRiveRS
newly RegiSteReD fiRmS DuRing JanuaRy 2009 – may 2011
Source: Department of Business Development and colliers international thailand research
the somewhat erratic figures still point to a long term upward trend in market in the longer term as new businesses are an important source of
new businesses with the first five months of the year showing strong demand.
numbers overall. this trend sends a positive signal to the office building
COLLIERS INTERNATIONAL | P. 6
7. Bangkok office Market rePort | Q2 2011
expoRtS fRom thailanD on a monthly BaSiS
Source: Bank of thailand and colliers international thailand research
industrial growth is one of the main drivers powering the office market markets. as a temporary aberration this will not have any discernable
as it brings about the need for trading, financial, legal and insurance effect on office demand as exports are likely to regain their vigour. in fact
services, amongst others, to support it. april’s fall was a result of the some commentators are suggesting that thailand could benefit from
Japanese earthquake and tsunami which severely disrupted supply changes to Japan’s manufacturing system in the longer term as a result
chain movements. imports of supplies from Japanese companies to their of the tragic events in March whereby more production is based
manufacturing bases in thailand fell dramatically which affected overseas.
manufacturing output and consequently exports to thailand’s primary
COLLIERS INTERNATIONAL | P. 7
8. Bangkok office Market rePort | Q2 2011
BuSineSS expanSion expectation inDex
Source: Bureau of trade and economic indices and colliers international thailand research
Sentiment relating to future prospects for business expansion still business people being optimistic than pessimistic it appears not to be
remains in the doldrums. a significant driver for office space demand strong enough to lead to a surge in demand going forward. the aftermath
comes in the form of existing businesses expanding their operations. of the general election will be critical to whether confidence returns.
although there has been a bounce back from early 2009 with more
BuSineSS expectation foR finance & inSuRance companieS inDex
Source: Bureau of trade and economic indices and colliers international thailand research
finance and insurance companies represent a strong market for office financial crisis receded but recent issues regarding the greek financial
space in Bangkok. overall it would appear that sentiment is based more solvency and budget issues in the USa and Japan have renewed fears
on the global economic travails than the domestic situation in thailand. that seem to have resonated in thailand.
a strong rebound in confidence took place after the effect of the global
COLLIERS INTERNATIONAL | P. 8
9. Bangkok office Market rePort | Q2 2011
Rental Rate, Q2 2011
Rental Rate By location
Source: colliers international thailand research
Unsurprisingly the cBD commands the highest rental rates due to its offices are located close to both the BtS and Mrt while most offices in
location and number of grade a buildings. rents in the outer cBD the outer cBD are located some distance from mass transit lines and
dropped while increases were recorded in the cBD and northern fringe many are relatively old.
areas. this could be explained by the fact that a significant number of
Rental Rate By gRaDe Q2 2011
Source: colliers international thailand research
rentals remained stable across the board for Q2 2011 reflecting continued office. this reflects the backdrop of political and economic uncertainty
lack of significant movement in the market. for the past three years but with rates still being underpinned by lack of significant supply during
there has been no discernable change in office rental rates for grade a this time.
COLLIERS INTERNATIONAL | P. 9
10. Bangkok office Market rePort | Q2 2011
hiStoRical Rental Rate in thRee main locationS, Q1 2009 – Q2 2011
Source: colliers international thailand research
the northern fringe continues to edge the outer city in terms of rental rental rates by far with the northern fringe and outer cBD able to
rates but the difference is negligible. the cBD commands the highest charge around 75% of the cBD average rental rate.
hiStoRical Rental Rate By gRaDe
Source: colliers international thailand research
rental rates of grade a office buildings have remained stable since 2007 and this has likely adversely affected grade c rentals. the increasing age
while grade B office buildings recorded a drop of approximately 5 – 6%. of grade c buildings is also likely to become noticeable as image and
colliers international thailand has noticed that some landlords have facilities may be increasingly unfavourable to tenants, and owners should
offered more favourable terms and incentives for tenants to maintain consider significant renovations in similar fashion as the retail sector in
occupancy during difficult economic times, especially for small businesses order to maintain competitiveness.
COLLIERS INTERNATIONAL | P. 10
11. Bangkok office Market rePort | Q2 2011
Rental Rate of office BuilDingS in Bangkok By DiStance fRom BtS / mRt (metReS), Q2 2011
Source: colliers international thailand research
offices located close to mass transit stations command a premium a 40% difference being registered. Mass transit only explains part of an
although many are newer buildings that would usually command higher office building’s appeal. access to expressways may be equally or even
rentals. the sharpest difference occurs in grade c buildings with around more important for tenants.
COLLIERS INTERNATIONAL | P. 11
12. Bangkok office Market rePort | Q2 2011
foRecaSt
pRomiSe on the otheR SiDe of the wateR But can the on the critical list, other economies such as Portugal, ireland, italy and
fRagile BRiDge Be cRoSSeD? Spain ( collectively named with greece as the PiigS) are still in intensive
care. greece can be absorbed as the financial institutions have had over
With the growth of the aSean economic community, thailand could be
a year to prepare and unwind their positions to some degree.
a significant beneficiary in acting as a sub-regional office serving the
emerging markets in cambodia, Vietnam, Laos and possibly Myanmar in
However, the very action of a greek default could create a domino effect
the future. alongside this, increasing investment in the manufacturing
that could even topple a large “too big to fail” economy such as italy or
base and a bounce back in tourism all present the country with significant
Spain. the consequences of such an event would send the global
opportunities to prosper and for a new growth dynamic for office demand
economy in a tailspin with far more catastrophic consequences than the
to take place.
Lehman collapse. this is unlikely as those most at risk have been given
a two year breathing space but is still possible and it will take a number
However Q3 2011 could be a pivotal quarter as it begins with the general
of years of concerted effort to put these countries back on track to
election and the rest of the three month period will determine how the
relative fiscal health. Meanwhile businesses must watch and wait.
results pan out in terms the new government and how the winners and
losers can be accommodated. if some form of adjustment is made and
the current most likely scenario is a return to global growth following
the situation settles down the country can breath a sigh of relief and
the return of the full functioning of the supply chain disrupted by the
businesses may start to plan for the future in earnest. this could be the
Japanese tsunami and this could stave off the worst case from happening.
spark for the office market that has been missing for the past four
if the thai political situation comes to some form of resolution then
years.
businesses are likely to implement growth strategies that could well
propel demand for office space and therefore with limited supply over
the threat of global financial contagion still lingers but in the form of a
the next few years the office market could once again show signs of
default of greece’s sovereign debt. this on-again off-again story is likely
dynamism going forward.
to continue as the systemic issues of greek economic weaknesses based
on the underlying lack of competitiveness remain, with bail-outs only
delaying what many consider the inevitable. While the country remains
COLLIERS INTERNATIONAL | P. 12
14. Bangkok office Market rePort | Q2 2011
office Zoning
the general lack of zoning restrictions in Bangkok has led to the existence While Sukhumvit road up to asoke is primarily perceived as an
of significant office supply in a wide range of locations in the city and entertainment and residential area, a large number of grade a buildings
how the market has perceived the cBD has evolved over the past 20 sprung up in the nineties and also in the past few years. it is therefore
years. the original cBD was located at the Silom and Surawongse roads, considered as part of the cBD. as a working definition the cBD, for the
home to the vibrant gold market and other trading businesses. the purposes of office classification, is where a significant number of grade
development of modern office buildings in the nineties, with a larger a office buildings are located. as such the old cBD is now considered
floor plate could not be accommodated in this area and the cBD began the outer cBD as well as Petchburi road where more grade B offices are
to take shape in the eastern section of Sathorn road. located. over time this structure could evolve.
COLLIERS INTERNATIONAL | P. 14
15. Bangkok office Market rePort | Q2 2011
collieRS inteRnational thailanD
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VaLUation & aDViSorY SerViceS
nicholas Brown | associate Director
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Wanida Suksuwan | Manager
PattaYa office
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Supannee Starojitski | Senior Business Development ReSeaRcheR: ReSeaRcheR:
Manager / office Manager thailand thailand
antony Picon Surachet kongcheep
associate Director | research Senior Manager | research
email antony.picon@colliers.com email surachet.kongcheep@colliers.com
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