Rental Guide! How to choose your suitable office space?

According to Cambodian media reports, in the first two months of 2024, Cambodia attracted investment of more than $1.3 billion, an increase of more than 500% compared with the same period in 2023, of which the Chinese investment flow was about $545 million, accounting for nearly 40%.

It can be seen that investors from various countries still favor the Cambodian market. As more investors invest and open factories and enterprises in the kingdom, the Cambodian market will become more dynamic and have more opportunities.

So, how to rent an office when starting a company in Cambodia? Today, Compass Real Estate will share with you some useful tips for renting an office. Let’s take a look!

┊Specific Requirements┊

1. Budget

First, you need to determine how much space you need and your budget.

If you only have a few employees and actually don't need a lot of space, a shared office might be a good option for you. Shared offices often offer flexible leasing options and can lead to significant financial savings.

If you need a larger space, than you might consider renting an entire floor or entire building.

Currently, office buildings in Cambodia are divided into Grade A, Grade B and Grade C, with many options to choose from. Grade A offices are of the highest quality, with superior geographical location, state-of-the-art facilities, and professional property services. They are the first choice for many large-scale companies or company headquarters, so most of them will rent the entire floor. Grade B are mid-level, and Grade C are relatively old.

2. Lease Renewal: There is no statutory right to renew leases in Cambodia. Landlords and tenants can negotiate new terms before the lease expires. For the lessor, you can negotiate with the landlord to incorporate the lease renewal procedure into the contract, including the maximum amount of rental price that can be increased when renewing, so as to protect your own rights and interests.

3. Lease Termination: When the contract expires, the enterprise shall return the office space under the conditions received.

4. Rent-free Decoration Period: The length of the rent-free period is determined based on the quantity, cost and length of the leased office space. Currently, rent-free periods can range from 1 week to 3 months.

┊Office Market in Phnom Penh┊

In 2023, there is an increase of nearly 200,000 square meters of new office supply compared to 2022, among which the supply of Grade B offices has increased significantly.

In terms of rental price, the average price for Grade A offices is about $23/sqm per month. For example, Vattanac Tower $28-$48/sqm, Flatiron by Meridian $28/sqm, Morgan Tower $15/sqm.

The rental price for Grade B offices is above $10/sqm per month. Raintree Office $25-$29/sqm, Keystone Office Building $25/sqm, Amass Central Tower $18/sqm.

As for Grade C offices rental price starts from $6/sqm per month.

In conclusion: Renting an office is a complicated process. There are too many choices for office buildings in Phnom Penh, which requires enterprises to consider comprehensively from specific requirements, on-site inspections, negotiation and signing to the stage of management. Only by these things well can ensure that the company rents the most suitable office and lays the foundation for the long-term development. In addition to renting an office, if the company has made long-term development plans and has sufficient budget, buying land and building its own office building is also a good choice.