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LATENT DEMAND TO DRIVE OFFICE MARKET IN 2008

November 29th, 2007

The Bangkok office market in 2008 hinges on latent demand from multi-national companies which could rebound quickly once the policy direction toward foreign investment becomes clear, according to CB Richard Ellis, a leading international property consultant.

If there is a more overseas investor friendly policy and a democratic government, investor confidence will be restored which will boost the office market next year.

CB Richard Ellis estimates that about 80% of the tenants in Bangkok’s เrade A office buildings in the central business district are multinational companies. “We have seen expansion delayed and few of new start ups due to a weak economy, political uncertainty and concerns about foreign ownership of companies in the services sector,” said Nithipat Tongpun, Director and Head of Office and Retail Services at CB Richard Ellis.

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