What You Need to Know About Renting Office Space in Phnom Penh
The Phnom Penh property market boasts a diverse range of options, from modern high-rises in prime locations to budget-friendly co-working spaces. However, the landscape is constantly changing, with new developments and shifting trends. Here’s what you need to know:
- Market Dynamics: The market is currently seeing a rise in demand, particularly for Grade A office space in central business districts (CBDs) like BKK1 and Daun Penh. This has led to increasing rental rates, so be prepared for competitive negotiations.
- Emerging Areas: While CBDs dominate, keep an eye on promising satellite districts like Toul Kork and Chroy Changvar, offering modern spaces at potentially more affordable rates.
- Types of Property: From standalone offices and shared workspaces (office buildings or apartment buildings) to retail shops, choose the property type that aligns with your business activity and budget.
Key Considerations:
Before embarking on your search, clearly define your requirements:
- Location: Consider factors like accessibility, proximity to clients and suppliers, and the vibe of the neighborhood.
- Space Requirements: Determine the size you need to accommodate your team and future growth.
- Budget: Establish a realistic budget that includes rent, security deposit, maintenance fees, and potential renovations.
- Amenities: Identify essential amenities like parking, high-speed internet, and security measures.
Average Rental Rate:
Office Grade | Average Rate Per Sqm* |
Grade A | USD 28 – USD 40 |
Grade B | USD 18 – USD 29 |
Grade C | USD 9 – USD 18 |
Sqm = Square Meters |
It is important to take into account more than just the price per sqm when searching for an office to rent in Phnom Penh. A management fee of between USD 2 – 5 per sqm is typically added by most offices. The charge covers the upkeep and maintenance of the communal facilities and buildings.
Given the existing capacity of parking places in the capital, office space for rent in Phnom Penh is often accompanied by discussions over parking. You should check the parking allotment of any office building you are considering, since the average car parking space allowance is one lot for every 100 sqm of net lettable space taken by the tenant.
It is also advisable to confirm whether the amount provided by the landlord includes or excludes any applicable taxes, such as VAT and withholding tax.
Finding the Right Fit:
Once you have a clear picture of your needs, leverage available resources to find suitable options:
- Real Estate Agencies: Partnering with a reputable agency provides access to extensive listings, market insights, and negotiation assistance. With many years of experience in the competitive market, our team members are experts in what we do and have mastered negotiation skills.
What You Need to Know About Renting Commercial Property in Phnom Penh
Different from office space, commercial property on our webpage mainly focuses on the properties that suit business activities, from retail stores (space in apartment buildings, office towers, shop-houses, and shopping malls) and restaurants to warehouses and land lots.
Key Considerations:
- Business Activity: What does your business do? Does it require customer interaction, specialized equipment, or specific zoning regulations?
- Property Features: Open floor plans, adaptable layouts, high-visibility locations
- Desired Location: Do you need high foot traffic, proximity to suppliers, or easy access for employees?
- Budget: Consider rent, security deposit, maintenance fees, and potential renovations.
It is noteworthy that most of the commercial properties in Phnom Penh offer renovation periods between half a month (15 days) to 2 months, depending on the property’s condition. Just like the rental price, the renovation period is negotiable.
Searching for a potential property in a diverse market like Phnom Penh can be challenging. However, if you are looking to start a business in Phnom Penh, our team members who have been in the market and understand the market dynamics like the palm of their hand shall give you the consultation and guide you to the best possible property as long as you are honest with your requirement and budget.
Ready to Take the Next Step?
By understanding the market dynamics, defining your needs clearly, and utilizing available resources, you can navigate the Phnom Penh commercial property market with confidence. Remember, thorough research, careful planning, and expert guidance are key to finding the perfect space to launch your business or expand your operations in this exciting city. So, embark on your Phnom Penh property journey with knowledge and confidence, and watch your business thrive!
*List of office buildings in Phnom Penh.
Office Building’s Name | Grade | Location |
Vattanac Tower | A | Daun Penh |
Exchange Square | A | Daun Penh |
GIA Tower – Garden In the Air | A | Koh Pich, also known as Diamond Island, Chamkar Mon |
Flatiron by Meridian | A | Daun Penh |
Sathapana Tower | A | Daun Penh |
Canadia Tower | B | Daun Penh |
Raintree Offices | B | Daun Penh |
Maybank Tower | B | Daun Penh |
Keystone Office Building | B | Norodom Boulevard, Tonle Basak |
TK Central | B | Tuol Kork |
Morgan Tower | B | Koh Pich, also known as Diamond Island, Chamkar Mon |
VTrust Tower | B | 7 Makara |
Maline Office | B | Tonle Basak |