Phnom Penh Office Sector
PHNOM PENH OFFICE SECTOR PHNOM PENH Key findings OFFICE SECTOR Four new office buildings (comprising 53,342 sq m of Overall supply for Grade B offices in Phnom Penh now surpasses NLA) completed during H2 2019, Grade A whilst centrally-owned offices still remains dominant as increased Phnom Penh’s overall strata-title office supply is increasingly coming online office supply to 517,043 sq m of NLA, an 11.5% increase from H1 2019. Supply and Demand by Chip Mong Group, located within Of the four new buildings, Star City a commercial catchment area in close (Q3 2019) and The Fortune Tower Four completions of office buildings proximity to the Olympic Stadium and the (Q4 2019), pumped in 45,059 sq m of during H2 2019; Chip Mong Bak Touk, Olympia City mixed development. NLA to the strata-title office stock, Alpha Tower, The Fortune Tower and totalling 79,636 sq m of NLA, a drastic Star City, have pushed cumulative The current flexible space trend is increase of 130% from H1 2019. supply of office NLA to 517,043 sq m. influencing landlords to redesign their traditional office space to match the However, supply growth for centrally- As at H2 2019, the cumulative supply needs of the ever changing labour force. owned office segment decelerated of Phnom Penh’s overall office supply This is evident when Alpha Tower significantly with an increment of 2% stood at 517,043 sq m of net lettable area ceased operation during first half of from H1 2019. Chip Mong Bak Touk (NLA), a y-o-y increase of 24% from 2018 for renovation and reconfiguration and Alpha Tower, both completed the second half of 2018.
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