Modern Office Space Demand in Phnom Penh

  • by Srun Mengkiang
  • 10 months ago
  • 0
Office space in Phnom Penh

Modern office space demand in Phnom Penh is high, driven by the steady development of local and foreign firms, as the market shifts from popular and affordable C-grade office space to grade A and B office space.

Predicted Increase in Office Demand

There is a considerable possibility for competitive operators in Cambodia to enter the retail industry, as evidenced by the launching of Aeons Mall 3 in Phnom Penh.

Companies from Cambodia and outside are moving into Phnom Penh, thus increasing demand for contemporary office space and transferring from older structures like villas and storehouses to newer, purpose-built office buildings.

C-grade office space, popular and inexpensive, is currently being replaced with higher-quality, more expensive office space to help businesses grow.

Since Boeung Keng Kang and Phnom Penh have the most office commercial space and are popular, they’re likely to see continued demand for commercial office space.

However, people are also shifting to Sen Sok Toul Kork, where demand is higher, and construction is progressing faster. That’s where people think the future is going to be.

An Overview of Phnom Penh’s Office Buildings

The city of Phnom Penh offers a wide range of business opportunities. Office space options are plentiful in the city, and they’re improving with the passing year.

According to renowned real estate consultant in Phnom Penh like IPIN their conclusions, Phnom Penh’s office sector has four major challenges:

More than 46,000 sqm of the net lettable area has been added to Phnom Penh’s office stock since the completion of Diamond Twin Tower, Prince Holding, and Elysee Tower.

Diamond Twin Tower, a mixed-use development containing condos, retail space, and offices, was the long-awaited addition to Phnom Penh’s office stock of Diamond Twin Tower.

Average occupancy in the first half of 2019 dropped 5.2% points due to the new supply entering the market. The slowdown in the condominium market may entice yield-seeking investors to buy office properties.

This year has seen significant growth in the number of offices in Phnom Penh. By 2021, experts forecast a total of 1,059,170 square meters of NLA available, assuming all monitored projects are finished on time.

A New Era for Cambodia’s Commercial Sector

Existing commercial tenants from the corporate, diplomatic, and non-profit sectors have continued to move from large villas to freshly constructed commercial premises.

The market response has been a significant vote of confidence in the developers’ company since they focused on B and C Grade sectors and supplied new, distinctive locations for those customers.

This includes properties such as the City Tower, Legacy, K1, and Aura Offices. The emergence of co-working was a new and exciting development in the industry.

Commercial office developers are always innovating to satisfy the shifting needs of the market, as seen by projects like Office 79, Office 106, Office 28, and The Factory.

Incorporating the contemporary and stylish design of two refurbished homes, Offices 106 and 79 provide a functional co-working space complete with a pantry and conference rooms.

When it comes to the Factory project, it’s been pushed to a whole other level. For the first time, The Factory offers public access to co-working spaces, production facilities under one roof, office spaces, a food court, a café, and a child care centre.

The Factory features dozens of green spaces, meeting rooms, and a designated area for art walks.

Strip malls and huge shopping centres, two newer kinds of retail shopping, have given traditional open-air strip malls a westernized feel.

It’s not just the newest high-end shopping malls, for example, Exchange Square or Aeon, that are attracting attention; older commercial retail locations such as Sorya Mall are also getting a facelift.

Is It Feasible to Acquire Workspaces as a Foreigner?

There are severe restrictions in Cambodia that only allow natives to have hard and soft title ownership of the real estate.

However, it is still feasible for investors to acquire office space or structures under the strata title. Condos are a common example; however, any property that fits the following criteria can be purchased by foreign investors:

  • It isn’t positioned on the ground level or in the basement.
  • It is not within a 30-kilometer radius of a land boundary.

As a further restriction, foreign investors can only purchase 70% of the property’s total surface area. The only way around this is by setting up a local firm to acquire the office space.

It would be best to recruit local shareholders before forming the corporation to get legal approval. You may safeguard your investment by creating separate share classes, securing your land, and establishing a minority control deed

As a local investor, you don’t have to worry about legal snags because you can conduct your due research and purchase an office.

Office Space for Sale in Phnom Penh?

As far as office space and buildings go, Phnom Penh has the best options. The city is the country’s commercial, economic, and tourism centre. Check out the finest places to open an office in Phnom Penh below.

Chamkar Mon

Due to its many tourist attractions, Chamkar Mon is a favourite of visitors worldwide. To name a few: The Naga World Hotel, The Russian Market, and the Tuol Tompoung Market. Foreigners and locals like Chamkar Mon’s BKK1 and BKK2 neighbourhoods.

Daun Penh

It would be best if you locate your firm in Phnom Penh’s premier commercial district, Daun Penh.

You may find many government buildings, embassies, and foreign colleges in this area because it is a commercial neighbourhood. Because of this, the return on investment and the rental price for an office here are both greater than average.

Wrapping Up

Foreign direct investment has significantly propelled Cambodia’s real estate market forward in the last several years, attracting both large corporations and small business owners to the capital city.

With the rise of Cambodian firms and international corporations seeking access to the country’s expanding market, modern office space demand in Phnom Penh has skyrocketed.

Contact me directly on Telegram https://t.me/srunmengkiang

or Email: mengkiang@themoneyfact.com

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