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Real estate boom: North Bangkok

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Limited office space & rising rents in central Bangkok has led to office building boom in north Bangkok. 

Skytrain passes along Sathorn Road in Bangkok's Central Business District (CBD) at sunset.



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Economics
PROPERTY

New office space clustering north of CBD

6/11/2012
Kanana Katharangsiporn

The north of Bangkok is set to become a major business district as multinational companies increasingly seek a presence in the city...

Starting next year, new offices will arrive in the area north of the central business district (CBD)...

The construction boom is being fuelled both by local firms seeking to expand and by growing demand for a regional base ahead of the Asean Economic Community (AEC) in 2015.


From January 2012 on, more than 1,900 new companies were registered each month ... Office occupancy is high throughout the city, with buildings near BTS and MRT stations able to charge premium rent.

The increase in the minimum wage is adding to the cost of building management. While some landlords have offset this by cutting staff - especially by investing in cameras to replace guards - the wage rise will eventually become one of the pressures driving up rents throughout the city.

Bangkok has more than 8 million square metres of office space. But demand is starting to outstrip supply, with little new land available in the CBD and rents heading skyward.

More than 26,640 sq m has been or is scheduled to be completed in 2012 - about 24,200 sq m in the outer CBD area and the rest in the northern fringe.

The CBD represents the biggest share of Bangkok's office building market with 36% of total supply, followed by the northern fringe [with 20%] and the outer CBD [with 13%].

More than 286,000 sq m of office space is scheduled to open in 2014 in the three zones. The northern fringe represents the largest share with 71%, or 3.6% of the current supply in Bangkok.

The limited availability of land in the CBD and outer CBD areas and rising land prices over the past few years were obstacles for all types of real estate development, including office buildings.

Most new office buildings were located in the northern fringe and had similar facilities to those in the CBD...

...An overall rise in occupancy rate coincided with positive signs in Thailand's economy and politics. The city is well positioned for companies looking to enter Myanmar, Laos and Cambodia...

(Source: Bangkok Post, Economics, PROPERTY, New office space clustering north of CBD, 6/11/2012, Kanana Katharangsiporn, link


Real Estate Industry Vocabulary

business district - an area of the city with many businesses (not homes and apartments), also called "commercial district" (See Wikipedia)

central business district (CBD) - the most important and "central" business district in a large city (See Wikipedia)

Bangkok's central business district (CBD) -
(See Wikipedia)

space - an empty area that can be used for some activity; room ที่ว่าง, พื้นที่ว่าง
office space - a place that can be used for offices; an empty area in an "office building" that can be used for company offices

cluster - a group of things close together  กลุ่ม

occupy
(verb) - to be at a place and using that place for some activity (example: a business occupies that office), dwell in, live in, inhabit อาศัยอยู่ใน
occupancy (noun) - when a business or individual uses real estate (for a fixed period of time)  

rate - อัตรา
occupancy rate - the percentage of units (offices, apartments) in a building that are being used and rented
an overall rise in occupancy rate

office occupancy
- office occupancy rate, the percentage of offices that have someone renting them (already full and not available to rent) 
office occupancy is high throughout the city,

multinational companies
(MNCs) - a company that operates in several different countries, especially a large and powerful company (See Wikipedia)

presence - when someone or something is in a place การอยู่ในสถานที่หนึ่ง (ของบุคคล)
seek a presence in the city... - when a company has offices in a city

construction - the work of building or making something, especially buildings, bridges, etc. การก่อสร้าง
construction boom - a very large increase in buildings being built (constructed)

fuelled by - caused by
the construction boom is being fuelled by...

local - in or related to the area that you live, or to the particular area that you are talking about ท้องถิ่น
expand - to become larger ขายตัวออกไป
local firms seeking to expand

base - a place from where an activity can be planned and operated ฐานที่มั่น
regional base - a central place that a company can run their operations in a region (such as ASEAN) from

demand - the need and desire to buy goods and services by households and businesses
growing demand for a regional base ahead of the Asean Economic Community (AEC) in 2015.

register new company -  officially record as a business with the government (and given permission to operate)  
more than 1,900 new companies were registered each month

rent - to pay money for the use of something for a period of time เช่า
charge rent - require that someone using real estate pay a certain amount of money (monthly rental fee)

premium - special features or service that you pay extra for
premium rent - higher rents (paid for better location and other valuable features)

charge premium rent
buildings near BTS and MRT stations able to charge premium rent

wage - an amount of money that you earn for working, usually according to how many hours or days you work each week or month ค่าจ้าง
minimum wage - the smallest amount of money that workers can legally be paid for their work

The increase in the minimum wage is adding to the cost of building management.

landlords - the owners of land or real estate  
landlords have offset higher minimum wages by cutting staff

replace - to get rid of someone or something, and to put a new person or thing in its place เลิกให้และนำสิ่งใหม่มาใช้แทน หาคนมาแทน
investing in cameras to replace guards

pressures - things that cause change (that cause other things to happen)
drive up - cause an increase in something
pressures driving up rents

eventually - at the end of a period of time or at the end of a process ในที่สุด
the wage rise will eventually become one of the pressures driving up rents throughout the city.

outstrips -
is greater than
X outstrips Y - 
X is greater than Y
demand is starting to outstrip supply

rents heading skyward -
rents are increasing very quickly (like a rocket shooting into the sky)

scheduled - planned to happen at some time in the future ตามตารางเวลา
scheduled to be completed
scheduled to be completed in 2012

fringe - the edge or border of something ตะเข็บ, ริม
urban fringe -
area on the edge of a city, suburb ชานเมือง
the northern fringe - the urban fringe north of Bangkok

share - a part of something, a portion ส่วน, ส่วนแบ่ง, ส่วนร่วม
the biggest share

X represents the biggest share of Y

The CBD represents the biggest share of Bangkok's office building market

current - of the present time ปัจจุบัน
The northern fringe represents the largest share with 71%, or 3.6% of the current supply in Bangkok.

availability - people can get it if they need or want it; something exists and people can use it การหามาได้, การหาได้ง่าย
limited availability - only a small amount available (not as much as people need or want)

limited availability of land
The limited availability of land in the CBD

real estate development - the business of building on and improving land such as building new houses, offices, etc (See Wikipedia)

obstacles - things that makes it difficult to go somewhere or do something อุปสรรค
rising land prices over the past few years were obstacles for all types of real estate development

facilities - the buildings, equipment and services provided for a particular purpose สิ่งอำนวยความสะดวก
similar facilities to those in the CBD...

coincided with - happened at the same time as เกิดขึ้นในเวลาใกล้เคียงกัน
a rise in the occupancy rate coincided with positive signs in the economy

positive - good ที่ดี ในแง่ดี hopeful and confident, or giving cause for hope and confidence ซึ่งมองในแง่ดี
positive signs in Thailand's economy and politics

well positioned for - are ready to do, are prepared to do (have needed resources to do)
looking to -
planning to do something in the future

The city is well positioned for companies looking to enter Myanmar, Laos and Cambodia...

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