Positive Economic Outlook to Boost up the Demand for Office Space in the Market
HONG KONG, CHINA--(Marketwired - June 03, 2015) - Colliers International has been appointed as sole leasing representative for Sule Square, a Grade A office tower consisting of approximately 30,000 square metres (sq m) of leasable area in the heart of downtown Yangon, Myanmar.
Commenting on the market in Myanmar, Dennis Yeo, Interim Chief Executive Officer of Asia said: "Colliers is optimistic about this reform-embracing country and was the first international real estate services company to enter the Myanmar market two years ago. We believe the ASEAN integration will stimulate the inbound capital, eventually fuelling businesses and increasing our client's demand for office space. The economy is also witnessing an early stage of expansion, which will drive further growth in various investment sectors."
Sule Square is due for completion early in 2016 and is developed by Shangri-La Hotels and Resorts, Asia Pacific's leading luxury hotel group with an existing presence in Yangon since 1995. This modern Grade A commercial complex, the first development in Yangon will offer 15 floors, each covering 2,000 sq m of space.
According to Colliers International Yangon Research and Forecast 4Q 2014 report, there is only 38,000 sq m of top-tier office space in Yangon at present. In 2015, new supply is estimated to reach over 60,000 sq m, more than twice that of 2014. While many better-quality office options are now underway, there remains an absence of proper international Grade A buildings in Yangon.
"Finding office space is a headache for multinational companies looking to set up operations in Myanmar," said Tony Picon, Managing Director of Myanmar. "The occupancy rate continued to improve in 4Q 2014, albeit at a modest rate of 0.44% quarter-on-quarter. On an annual basis, the demand is high, registering a 9% increase in net take-up from 2013's 26,000 sq m. The entry of new investors, particularly foreign banks and securities companies will help buoy the take-up rate."
The citywide monthly average office rental rate ended at USD 69.17 per sq m in 4Q 2014, a slight increase from 3Q 2014's USD 68.75. The forecast direction for the citywide average rent remains upward in 2015, albeit at a more modest rate than witnessed in the past two years. Colliers asserts the lack of international-standard office buildings will keep premium rental rates relatively stable.
About Colliers International Group Inc.
Colliers International Group Inc. is a global leader in commercial real estate services with more than 16,300 professionals operating from 502 offices in 67 countries. With an enterprising culture and significant insider ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include brokerage, global corporate solutions, investment sales and capital markets, project management and workplace solutions, property and asset management, consulting, valuation and appraisal services, and customized research and thought leadership. Colliers International has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals' Global Outsourcing for 10 consecutive years, more than any other real estate services firm.
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