Revolution of future office spaces

• 2 June 2020
• Local News
• 1553 Views

The office market will keep growing as land prices continue to soar, just as office rents in Phnom Penh have risen consistently over the last few years, despite the incoming supplies on the market.

The office market today in Phnom Penh is still on the rise and, so far, there is no risk factors currently for the next dip. This sector has boomed as many multinational companies flocked to Cambodia. With more office spaces still in the planning stage with sites having been acquired, it is expected to see more construction starting and this will lead to an increase in projected future supply beyond 2022. Meanwhile, vacancies are expected to rise in the old office buildings completed more than 10 years ago, which may force the landlords to offer more attractive rents, or else improve the quality of their spaces in order to retain their existing tenants.

Another concern is the growing population density of office buildings; there is a growing trend towards flexible working spaces amid the spread of the coronavirus pandemic, hence some buildings will need to have a lift capacity to deal with the volume of traffic. Flexible working space is usually equipped with basic equipment, and this allow individuals to have a physical office for a specified amount of time, at a pre-arranged fee.

In addition, more people per floor will require more sophisticated air-conditioning systems in order to keep temperatures constant in all working areas. The larger office population in the office building will also mean that there should be better supporting amenities in buildings – particularly as facilities including washrooms are becoming more important to tenants.

In the future, it is expected that more tenants will move to flexible workplaces which means they will require less space, but pay more rent per square metre, as they will need good quality buildings.

By Eric Wong Chon Lap