Grade A office space luring companies

[PHNOM PENH POST]

AS Phnom Penh’s office space supply continues to grow, more companies are beginning to favour leasing in office complexes rather than individual units, industry experts say.

The completion of developments such as Phnom Penh Tower and other high-grade office space in the capital had provided a viable alternative for businesses, Bunna Realty Group director Sung Bonna said yesterday.

“Leasing office space allows companies to cut down on  expenditure, such as security,  taxation and electricity. It also offers the opportunity to receive more publicity,” he said.

Sung Bonna said investment in commercial property had been growing rapidly since the real-estate sector recovered from the financial crisis.

“Since 2009, the demand for space in office complexes has risen by 80 per cent,” he said.

However, Sung Bonna urged investors to be wary when considering investments in office space in Cambodia.

“They should be clearly aware of the current situation of the lease market before making a decision. It is still small, and they need to consider supply and demand.”

However, while demand for such space remains an issue, some office leasing companies believe the sector is still competitive.

“Although rival companies can offer office space at a more competitive rate than us, our other rates are all-inclusive, providing potential clients with options,” office rental service SSN Center general manager Phan Sopheap said yesterday.

Other companies highlighted the financial benefits of renting space in office complexes, rather than single properties.

“Historically, occupiers had little choice when choosing an office building, so many are still in converted villas,’’ Kim Sung Hwan, general manager of construction contractor Hyundai-Amco, said.

“Developments such as Phnom Penh Tower now provide occupiers with a new building that has been constructed to international safety standards.”

He added that international and local businesses needed to have a professional office like Phnom Penh Tower, as location and quality played a key role in projecting the right image for a business.

Phnom Penh currently had  about 70,000 square metres of grade A office space, which cost between $20 and $30 a  square metre, while the 10,000 square metres of grade B office space in the capital fetched between $10 and $20, Sung Bonna said.