All You Need to Know about Offices in Bangkok
Bangkok is famous for its profitable markets and cheap labor costs, that’s why it is hailed as one of the best places in Asia to invest or start a company in. Its central business districts—Ploenchit Road, Rama IV, Ratchadamri Road, Wireless Road, Sathorn and Silom—are filled with high-rise buildings where you can settle your business or open a corporate division. If you’re considering setting up your company in the Thai capital, here’s everything you need to know about offices in Bangkok.
Bangkok Office Ownership
There are two ways of owning an office in Bangkok. One is single ownership, wherein a building developer creates a high-rise infrastructure and rents the different floors to several lessees, in which case, the developer oversees the maintenance works in the building. Another type is multiple ownership. Here, different companies are given the chance to purchase several office areas in a certain building. The responsibility of maintenance work falls on the shoulders of the office tenant.
Things to Consider before Leasing an Office
There are a lot of choices for office space, but here are the factors you should consider before buying or renting one:
- Weatherproof construction (Bangkok experiences a fair share of rainstorms and earthquakes every year.)
- 24/7 Security – trained personnel, inspection protocols, CCTV cameras, metal detectors at the lobby
- Safety features such as fire escapes, alarms, and fire extinguishers
- Adequate air-conditioning and climate control
- Lifts or elevators with short waiting times, especially for high-rise buildings
- High ceilings
- Open floors without pillars (as they can prevent the proper division of the office into several sectors)
- With an agency in charge of building maintenance (for single ownership offices)
- A presentable and well-designed lobby area
- Car park zone that is accessible and convenient for both employees and visitors
Also known as the lease tenure or lease period, it is a set, non-cancelable timeframe wherein the stipulations of the agreement are observed. In Bangkok, the usual lease term is three years. The lease terms can be renewed after the contract has expired, but they have to be agreed upon the lessee and the building owner. There are lease terms that can extend beyond three years. For foreigners, the maximum time for lease is 30 years, with an option to renew for another 2 terms of 30 years, but it is not enforceable. For an extended lease term, the tenant will have to pay taxes because the contract needs to be registered with the Land Department.
A deposit for office lease in Bangkok is usually comprised of two or three months’ worth of gross rental. The deposit will not bear interest, and can be refunded to the occupant once the lease has expired.
Rent-free Fit-out Period
This is defined as the time when your company can prepare and furnish the office space prior to opening, without paying any rent. This grace period usually ranges from 30 to 60 days. In Bangkok, an occupant who wishes to rent out an office space measuring 1,000 square meters is given a rent-free fit-out period of two months. Bangkok, Thailand promises a full financial guarantee to local businessmen and investors alike.
So if you decide to rent an office space in its booming capital, make sure to keep these vital tidbits of information in mind.