Office Space Demand on the Rise

KHMER TIMES
SUM MANET

An artist’s impression of Exchange Square. Supplied

The demand for office space in Phnom Penh is growing with Exchange Square, a tower with 16 levels of offices and a four-level luxury retail podium located at the center of Phnom Penh, to be launched early next year.

Ann Sothida, associate director of CBRE Cambodia, said she was confident that there would be full-takers for the project as it was connected to the main highway leading to the Phnom Penh International Airport. CBRE is the leasing agent for Exchange Square developed by Hong Kong Land.

“It is in an ideal location for tenants and we’re confident that Exchange Square will be a success,” Ms. Sothida told Khmer Times.

Exchange Square is located at Street 106, near Wat Phnom and is a stone’s throw away from the US embassy.

“The 20-story building is set to open in the first quarter of 2017. Four stories in Exchange Square will be designated as a shopping mall and the grade-A office space will cover a total area of 18,000 square meters,” added Ms. Sothida.

“About 60 percent of the shopping mall is already taken up by tenants and we’re confident that the office space would also be filled up. More international businesses are moving into Cambodia and this country seems to be an attractive place for foreign businessmen and investors.”

Other real estate agents were optimistic, too, that the demand for good quality office space in Phnom Penh would grow.

“While demand for commercial buildings has slowed down this year, demand for office space grew by about 10 percent compared with last year,” said Pen Phearun, the general manager of Canadia building. “The Canadia building’s office space covers an area of 17,000 square meters and the occupancy rate is now about 90 percent,” said Mr. Phearun. “This shows that there is demand.”

Hok Meng Heang, the managing director of VTrust Property, agreed with Mr. Phearun.

“VTrust Tower is seeing a growth in demand for office space and this year we saw occupancy go up by 15 percent, compared with the same period last year,” he said.

The office space in 15-story high VTrust Tower covers a total area of 18,000 square meters.

“I am optimistic that demand for office space will grow more in 2017 and for VTrust Tower, I can say with confidence that its occupancy rate next year will be 90 percent,” said Mr. Heang.