CBRE Research has just released the 2018 Prime Office Occupancy Costs report which surveys the rents of the most prime office building in 120 cities around the world.
Based on the survey, Bangkok was the 92nd most expensive city with the most prime offices, as of Q1 2018, achieving average rent at THB 1,186 per square metre per month. Hong Kong (Central) had the most expensive prime office rents at THB 8,673 per square metre per month. This is followed by London’s West End and Beijing’s Finance Street at THB 6,649 and THB 5,684 per square metre per month, respectively.
Global Prime Office Occupancy Costs
Source: CBRE Research, Q1 2018
Note: Office rents include service charges and taxes and are standardized on a net internal area basis.
Exchange rate as of Q1 2018 according to Bank of Thailand: USD 1 = THB 31.54
Palma de Mallorca, Spain, had the cheapest prime office rent out of total 120 cities in the survey achieving rents of only THB 505 per square metre per month. Cape Town, South Africa and Montreal (Suburban), Canada, were the second and third cheapest office rents at THB 587 and THB 632 per square metre per month.
On the bright side, Bangkok was the city with the second largest annual increases in prime rents with the best buildings like Gaysorn Tower at Ratchaprasong intersection, seeing a 16.9% annual increases in US dollar terms. Durban in South Africa had the biggest increase with a 21.4% rise compared to last year. At the other end of the scale, Dubai, Shanghai (Puxi) and Midtown Manhattan, New York, saw the biggest drops in rental with falls of between 9.4% – 15.4%.
CBRE Research expects that Bangkok’s office rents will continued to rise for the next three years and that the best buildings will command a premium over average grade A office rents.