PROPERTY / COMMERCIAL SPACE
Bangkok fifth cheapest office space in world
Bangkok has the fifth cheapest office cost per workstation in the world based on a survey by the Singapore-based international property adviser DTZ Debenham Tie Leung.
In its 11th annual Global Office Occupancy Costs Survey 2008, Bangkok ranks 133rd globally in terms of office costs per workstation, or about US$2,840 per workstation per year.
The report is a guide to total occupancy costs across 137 business districts in 49 countries and territories.
Thailand sits with other cities in Asia Pacific at the bottom of the rankings. Indonesia's Surabaya was the least expensive at $1,550, followed by Manila (Ortigas) at $1,670, Jakarta at $2,170 and Tianjin at $2,830.
London (West End) continued to top the rankings as the most expensive location globally at $31,160 per workstation per year, followed by Hong Kong at $27,540, London (City) at $20,690, Paris at $20,430 and Tokyo (Central 5 Wards) at $18,430.
The top five locations with the highest annual growth in occupancy costs per workstation (quoted locally) were Moscow (95%), Singapore (93%), Dubai (74%), Manila (Makati) (73%) and Silicon Valley (San Jose, CA) (53%). On the other hand, Lisbon (-24%), Tallahassee (-22%), Atlanta (-20%), Los Angeles (-19%) and Las Vegas (-8%) experienced the largest decline in occupancy costs.
Workers in the 137 business districts surveyed worldwide utilised an average working space of 162 square feet.
Workers in North America enjoyed the most space at an average of 234 square feet (21.9 square metres), while employees in Central and Eastern Europe had the least amount of space at 128 square feet (15.1 sq m).
The survey reports strong occupier demand across the globe, with Asia, Central & Eastern Europe and the Middle East leading the way despite the fallout from the US sub-prime crisis.
Regarding the 2008 outlook, occupier demand is forecast to continue to expand at a strong pace in key emerging markets. In the US on the other hand, economic uncertainty is likely to hurt confidence and lead to a moderate slowdown in occupier activity.
The company forecast demand in emerging Asian countries to remain strong, followed closely by Central and Eastern Europe. The recovery in some parts of Western Europe, Japan and Australia is anticipated to continue throughout 2008.