Six office buildings completed in Q2 despite drops in rent and occupancy rate

• 13 July 2020
• Local News
• 3995 Views

Six office buildings, including five centrally-owned and one strata-titled, have been completed in Q2 2020, despite a slight drop in rental prices and occupancy rates partly due to the COVID-19 crisis, according to CBRE Cambodia’s market view report published on 07 July.

The five centrally-owned office projects (one Grade B and four Grade C projects) comprise of Amass Central, Royal K Plaza, The Link III, Terra, and The Helix. With these five projects, the supply in the market by the end of 2020 is expected to be 64,026 square metres.

The occupancy rate in Q2 2020 saw a 4.5% drop compared to the same period in 2019. The statistics also saw a 3.1% q-o-q drop for Grade B in central business districts (CBD) and 2.9 % for non-central business districts (NCBD). However, the quoted rents for Grade C buildings surprisingly increased by 8% for CBD and 4.5% for NCBD.

The report also stated that despite the uncertainty caused by COVID-19 pandemic, existing tenants have tended to extend their leases.

Meanwhile, the strata-titled office sector saw one new project completion, which is The Legacy. This will bring a total of 59,000 sqm of new supply to the market by 2020, according to the report.

• Business and Market