Bangkok has biggest supply of office space in ASEAN cities

Bangkok contains the most office space of any ASEAN city, including Singapore, according to research by Colliers International throughout Asia Pacific.

Tokyo contains by far the greatest amount of space in Asia as a whole with around 10 times the amount as Bangkok.

The company’s managing director Patima Jeerapaet said that Bangkok’s strong position is a springboard for the city to benefit from the ASEAN Economic Community (AEC) in 2015. He said: “The service sector will be a key factor in the changes that will occur in 2015 and the fact that there is a significant amount of office space already and potential for more is a huge advantage for the city.”

The recent research shows that Bangkok has around 7,900,000 sqm compared to Singapore’s seven million. The other cities of Manila, Jakarta and Kuala Lumpur are further behind but not by much, according to Antony Picon, Associate Director for Research at Colliers. Most of the supply in Bangkok occurred in the 1990′s. “Other cities are catching up but opening up the service sector in Thailand should lead to the next wave of office development,” he added.

SunCity launches new phase of Sunway Velocity

Sunway City Bhd (SunCity) has launched a segment of its Phase 1A Sunway Velocity project, comprising 112 office suites and two levels of retail shops, said Ho Hon Sang, Managing Director for Property Development Malaysia at SunCity. The retail shops come in two segments, a single-height unit adjacent to the environmental deck and a double-height unit directly below the single-height unit. Located below the office suites, the retail shops feature a double frontage on both Jalan Peel and the environmental deck at Level 1, which is an entrance to the shopping mall. The units will feature a high-speed broadband network.

KL’s new office supply to become tenants’ market

Kuala Lumpur’s new office supply in the coming years will become a tenants’ market, according to the 4Q2010 Marketview Kuala Lumpur Office report released by CB Richard Ellis (CBRE) Malaysia.

“The supply scheduled to be completed in 2011 — 2.6 million sq ft in the city centre alone — will again tilt negotiations in the favour of prospective tenants,” said the report.

CBRE also expects occupancy and rental rates to remain flat or decline slightly this year, before downward pressure in 2012 and 2013.

As of end-2010, office space supply in the Klang Valley area reached 79.2 million sq ft, out of which 39.7 million sq ft is located within city-centre areas such as the CBD and Golden Triangle.

Meanwhile, the report also showed that retail activity in Klang Valley will likely increase.

“During discussions with retailers, we have been given indication that the majority intend to expand during 2011,” it said. “We have also learned of new brands scheduled to enter the Malaysian market during 2011, whether on their own or though local franchise partners.”

The total supply of retail space in Klang Valley stood at 42.3 million sq ft as of end-2010. The average occupancy rates of selected shopping centres in Klang Valley was estimated to be around 94.7 percent, with 92.9 percent for city-centre occupancy and 94.5 percent for suburban areas.

Source: http://www.homeguru.com.my/property-news/2011/3/295/kl-s-new-office-supply-to-become-tenants-market

Sunway Nexis Dataran Sunway

KUALA LUMPUR: Sunway City Bhd (SunCity) has launched its latest mixed commercial development in the commercial enclave of Dataran Sunway in Kota Damansara, Petaling Jaya, with a potential gross development value of RM500 million.

Developed by Sunway Damansara Sdn Bhd, the 5.83-acre leasehold Sunway Nexis is located next to the Sunway Giza mall and would comprise three-storey retail shops, a 13-storey office tower and a 20-storey “flexi office” block. It also has two levels of basement car park. “Sunway Nexis follows the success of Sunway Giza mall as a neighbourhood lifestyle centre encompassing leisure, entertainment, recreation and work facilities right at your doorstep,” said SunCity managing director of property development, Malaysia, Ho Hon Sang in a statement.

The Edge/Knight Frank Klang Valley Office Monitor

The Klang Valley office market is expected to remain fairly stable until December.

The near-term outlook is supported by strong economic indicators such as the government’s Economic Transformation Programme which has identified 131 Entry Point Projects to generate business and job opportunities.

This will in turn boost demand for office space, says Sarkunan Subramaniam, executive director of Knight Frank Malaysia, when presenting The Edge/Knight Frank Klang Valley Office Monitor for 2Q 2010.

“Despite a slight moderation in the global growth momentum, the robust domestic economic activity is expected to support the local economy,” says Sarkunan.

Generally, the office rental market remained stable in 3Q 2010 despite new completions and newly refurbished buildings in good locations.

Schlumberger Financial Hub opens in 1 First Avenue

KUALA LUMPUR: Schlumberger Limited, one of the world’s leading oilfield services companies, has opened its financial hub and regional headquarters at 1 First Avenue in Bandar Utama, a Grade A green-rated office building.

The opening was officiated by Datuk Sri Idris Jala, minister in the Prime Minister’s Office and CEO of the Performance Management and Delivery Unit (Pemandu) on Tuesday Nov 16.

“The Schlumberger Financial Hub is among the Entry Point Projects to attract 100 multinational companies to set up their global or regional headquarters in Greater Kuala Lumpur Klang Valley under the Economic Transformation Programme,” Jala said. Schlumberger is a leading supplier of technology, integrated project management and information solutions to customers working in the oil and gas industry worldwide.

PJ Trade Centre

The PJ Trade Centre in Damansara Perdana has more occupants now following the launch of Menara Mustapha Kamal by Tun Dr Mahathir Mohamad recently.

The building located along the Damansara-Puchong Highway (LDP) appears “incomplete” due to its modern design characterised by the use of raw, simple materials.

The 2.2ha project consisting of four blocks of office buildings with 20 to 21 storeys each, one two-storey annexe building and about 2,000 car park bays was unveiled to the media in conjunction with the handover of Menara Mustapha Kamal, which occupies Tower A, to Emkay Group recently.