Businesses are under pressure to manage costs. Managing their office needs is a key part of this, to review accommodation requirements as their staffing numbers in many cases reduce. Added to this change in staffing levels there is also the new consideration of to what extent should flexible working practices be adopted. Not just for today, but for the mid to longer term. These factors are producing an overall trend towards downsizing.
The supply of total office space in Bangkok has increased since the launch of 5 office building projects with a total rental area of 134,053sq.m. The city’s total space is now there fore 8.991 million sq.m.
Overall the leasing velocity of some new office buildings have not been as good as expected so far this year.
Q2 has seen a delay in handover of office accommodation to new tenants, however the latter part of the quarter this has improved with the Covid-19 cases remaining low in Thailand.
Some landlords have offered business directly affected by Covid-19 some form of rental relief, but this is certainly not standard. Normally, unless there is a direct and severe need the expectation is that tenants will fulfil their lease obligations.
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