The widespread flooding in the northern corridor of Bangkok has generated demand for temporary substitute offices in inner areas of the city where flooding risk is seen as lower.
"While rentals vary greatly from building to building, some building owners are asking for lower rentals than usual as part of their flood relief efforts. But generally, short-term rents are 20% higher than rental rates offered on a long lease term," said Yupa Sathienpabayut, director of the office agency at the property services firm Jones Lang LaSalle (JLL).
Some big corporations have been looking for temporary offices in locations outside Bangkok such as Pattaya, Si Racha and Laem Chabang as part of their business continuity planning (BCP).
Almost 30 major office buildings in the Vibhavadi-Rangsit and Phahon Yothin areas have been hit by floods but the full impact of flooding on the Bangkok office market has yet to unfold as the water continues to spread southward, closer to the commercial heart.
"Most office buildings in the city are located in downtown areas that remain dry," said Ms Yupa. "A typical office lease term of three years does not provide flexibility for tenants in office buildings located in the flood area to move out before their lease expires."
So far, companies have been reluctant to make leasing decisions as they were waiting to see if or how their business operations would be affected by floods.
Bangkok Post 8/11/2011 at 12:00 AM
"While rentals vary greatly from building to building, some building owners are asking for lower rentals than usual as part of their flood relief efforts. But generally, short-term rents are 20% higher than rental rates offered on a long lease term," said Yupa Sathienpabayut, director of the office agency at the property services firm Jones Lang LaSalle (JLL).
Some big corporations have been looking for temporary offices in locations outside Bangkok such as Pattaya, Si Racha and Laem Chabang as part of their business continuity planning (BCP).
Almost 30 major office buildings in the Vibhavadi-Rangsit and Phahon Yothin areas have been hit by floods but the full impact of flooding on the Bangkok office market has yet to unfold as the water continues to spread southward, closer to the commercial heart.
"Most office buildings in the city are located in downtown areas that remain dry," said Ms Yupa. "A typical office lease term of three years does not provide flexibility for tenants in office buildings located in the flood area to move out before their lease expires."
So far, companies have been reluctant to make leasing decisions as they were waiting to see if or how their business operations would be affected by floods.
Bangkok Post 8/11/2011 at 12:00 AM
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