Cambodia’s real estate sector has prospered tremendously in the past couple of years because foreign direct investment has brought large businesses and entrepreneurs to the city. As a result, there has been an increase in office space & retail space demand as local businesses, and foreign companies want to make a mark in Cambodia.
A brief overview of Phnom Penh’s business spaces
It is easy for companies to set up shop in Phnom Penh as it provides various options. The city offers a wide range of choices such as office space & business space and is only growing with every passing year.
Based on Cambodia Real Estate Highlights First Half 2019 report, there are four key findings for the office sector in Phnom Penh, which include the following:
- With the completion of Diamond Twin Tower, Elysee Tower, and Prince Holding, the total Phnom Penh office stock has grown to 463,701 square meters with a contribution of approximately 46,444 sqm of (NLA).
- In Phnom Penh, the Diamond Twin Tower was the first stratified office building to be added to a mixed development of condominiums, offices, and retail.
- With new incoming supply, occupancy dropped 5.2 percentage points during the first quarter of 2019 from 88.5% to 83.3%.
- As condominiums markets continue to cool, yield-focused investors may be drawn to stratified office investments.
Business Spaces Available On Rent
There is much confusion when we talk about retail and business spaces for rent. It seems that both refer to a specific space where business can be carried out. The amount of foot traffic that makes a specific space productive makes a clear distinction.
A high foot traffic requirement typically characterizes a retail space. There are many places where frontage boards are displayed, such as storefronts, shops directly adjacent to major roads, and street-level spaces.
On the other hand, business space is where business activities can occur. Generally, it is a bigger space, which allows for more employees, and has areas where teams can hold meetings or huddles and a break room where employees can rest or eat.
Types of Business Spaces
Business spaces don’t need to be near busy streets because clients visit the area for their specific needs regardless of where they are located. Some examples of business spaces are listed below:
- A dental clinic, a doctor’s office, or a veterinary clinic – These businesses do not require prominent locations. No matter where these businesses are located, clients will visit them as needed.
- A spa, gym, or wellness center – Businesses like this usually can be found inside residential buildings, condominiums, or commercial buildings.
- Coffee Shops – despite selling items, customers visit their stores and stay there and spend their quality time.
- Bars and Restaurants- Sometimes, they are located in areas where retail spaces are also found, but they have larger spaces which also consist of additional space for kitchens & restrooms.
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Types of Retail Spaces
This kind of commercial real estate can be seen everywhere. The type of goods they offer and the size of the space they occupy vary. A few examples of retail spaces are:
The local retail stores
- Are the smaller stores that are close to your home.
- They sell a variety of household items in smaller quantities than what you can usually buy in supermarkets.
- As they sell in smaller quantities, their items are usually priced higher by 10%-20%.
Clothing Store
- The clothing store is considered a retail space since it sells small quantities of products.
- They usually have glass frontages to allow customers to see the items they have on display.
Supermarkets – like local retail stores, supermarkets carry a wide range of household items, although they sell on a larger scale.
- Their price is lower because you buy in bulk.
- One egg, for example, can be purchased in local retail stores.
- In supermarkets, you have to buy one tray.
- Like most retail stores, they are located on major roads where many vehicles and commuters pass.
Convenience Stores
- A convenience store is almost like a local retail store but carries a broader range of products.
- They include food, medicine, household items like soap and shampoo, and many other items that local retail stores don’t have.
- They are also mostly air-conditioned, and operating hours are longer.
- It is convenient for those running late and has forgotten to pick up some items at the supermarkets.
Office Spaces
The term “office” is used to describe anything related to business.
A company must have an office where its operations are officially conducted by law. There are many types of offices, such as small desks in a corner to large offices dedicated to one specific business.
In Phnom Penh, there are several ways to find offices for rent. It is recommended that you go through an agent since they will also help you with the legal process of securing a lease. Real estate agents like IPS Cambodia with connections to office space lessors are there to assist you. They can save you much time and stress in searching for and negotiating the right space.
Locations in Phnom Penh Where You Can Rent A Business Space
Choosing a location wisely when renting an office space in Phnom Penh is important since just any place won’t work. IPS Cambodia, the leading real estate company in Cambodia, has compiled the best locations to rent business space in the city, as shown below.
Daun Penh
Daun Penh is an ideal place to rent business space in Phnom Penh. Located by the riverside on the Tonle Bassac river, it combines tradition with modernity in a perfect way. Most areas of the city have undergone major renovations, resulting in the construction of several high-rise buildings and commercial properties. While Daun Penh is under development, it’s still preserving much of its history, from the Royal Palace to key city areas.
Tonle Bassac
A Tonle Bassac business space is the best option if you run an international business or have clients and employees from abroad. In the Tonle Bassac district, embassies from Asia and Europe are located in similar numbers to those in Daun Penh.
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BKK
If you are looking for business space for your company, the BKK districts 1, 2, and 3 are great places to look. It is an attractive option for your brand because of its proximity to many commercial properties, residential areas, and other businesses.
BKK offers a wide range of office buildings from Grade A to C, depending on where you’d like to rent. Remember that Grade A buildings usually rent for $28 to $40 per month, so plan accordingly. You can also check out IPS Cambodia’s listings for other properties within this area.
7 Makara
A 7 Makara business space could be the perfect solution if you’re looking for affordable space in Phnom Penh’s city center. The Ministry of Rural Affairs and about 17% of the city’s businesses are located here.
Conclusion
Find a suitable retail space for rent, sale, or investment, regardless of your needs. We handpick properties for you. No matter what you are looking for, our property agents can assist you in finding a home, commercial space, or land that fits your budget and lifestyle.
