Following the extension to the lockdown till August, the workplace market slowdown will proceed within the third quarter with an extra lower in occupancy charge, in line with property marketing consultant Edmund Tie & Co Thailand.
Neeranuch Kanokvilairat, supervisor of analysis & consulting, stated some workplace tenants had been utilizing much less workplace area as they’d diminished the variety of workers to deal with the adverse affect from the pandemic.
“Some firms wanted to relocate to different workplace buildings which had decrease expenditure as they tightened their belts for enterprise survival. Some wanted to shut down their enterprise due largely to a chronic affect from Covid-19,” she stated.
Within the second quarter of 2021, the occupancy charge of prime central enterprise district (CBD) workplace areas in Bangkok dropped to 89.43% from 90.85% within the first quarter.
The downward pattern is about to proceed within the third quarter following the lockdown measures in July and August. It was a consecutive lower for the reason that second quarter final yr, the primary decline in a number of years, she stated.
The typical rental charge in prime CBD additionally declined from 1,065 baht per sq. metre per 30 days within the first quarter of 2021 to 1,055 baht within the second quarter — a drop of 1%.
The sharpest quarterly drop was within the second quarter final yr with a lower of practically 2%.
“The decline of rental in prime and secondary workplaces within the CBD was because of the rental reductions given to tenants whose monetary situation was severely hit by the extended affect of the pandemic,” she stated.
Amid the virus disaster that generated excessive infections in Bangkok and several other provinces, builders are anticipated to delay the opening of recent workplace buildings till the tip of the yr.
“The opening schedule might be additional delayed, topic as to if there will probably be an enchancment within the an infection charge and a leisure of the lockdown measures,” she stated.
Ms Neeranuch stated the affect of the outbreak will trigger extra enterprise closures and drive a lot of them to broaden cost-cutting measures or downsize their operations. Many firms will revise their area necessities, placing additional stress on the occupancy charge.
Landlords have a tendency to take care of the availability of economic aid measures, comparable to rental waivers and rental reductions, to maintain current tenants amid weak demand, whereas massive provide forces them to be extra versatile in rental charges and lease phrases to replenish their workplace area.
There’s a rising demand for LEED or WELL licensed buildings, which supply PM2.5 filtration and virus sanitisation techniques, deploy sustainable and inexperienced vitality and supply a inexperienced space and open space for outside leisure.
New prime workplace buildings will probably be outfitted with automated and sensor expertise and digital improvements to improve workplace services and help the digital transformation.
Bangkok workplace provide was recorded at 9 million sq m, a slight elevated of 0.8% in comparison with 8.9 million sq m within the first quarter of 2020.