Phnom Penh is developing at a rapid pace, and with this development comes an influx of investors, mostly foreign, seeking to build and expand their businesses in this capital city of this Kingdom.
As building an office from scratch is mostly out of the question, especially for foreigners, because of the high expenses involved and limitations set by local laws and regulations, the foremost concern now for these people is to find the best space they can rent at the most reasonable price.
If you go around the city, you can see a lot of signs advertising buildings and other properties for rent. While some of them can be rented at a low price, especially if the building is located far from where the main commercial activities are being held, most of them are expensive, especially if rented for commercial purposes.
To date, there is a glut of office space in Phnom Penh. Massive investments in the infrastructure and property sectors have pushed the number of office spaces in the capital city. The most conservative forecast put the increase at 77% by 2020.
While Phnom Penh is not as expensive as other metropolitan areas in the world like Tokyo and Singapore when it comes to office rentals, the high rental rates offered by many establishments would make it hard to attract many would-be investors, especially the not-so-moneyed small and medium enterprises like a minor consultancy firm, media company, mini-mart, drug store, and the like.
Such unfortunate scenario would not be good not only for the local economy, but also the economy of the entire country, which by and large is dependent on the outflow of capital and investments from the outside.
But a careful study made for a startling and very significant finding that shows some of those firms offering office space for rent actually offer much reasonable rates compared to their peers and competitors in the Office rental business.
Take the case of TSE. Focused on small and medium enterprises, TSE provides full office services to all of their tenants with emphasis on client satisfaction.
A comparison of rental rates shows that while TSE charges more for rental for a typical office and flat compared to its competitors, its rates are actual lower when you factor in everything.
A TSE renter for an office space for an average of 10 persons will have to pay a total of $8,400 in one year, inclusive of monthly rental, cleaning, security, pantry, and meeting room. Monthly rental for a TSE office is $700. For other rental companies, rental of the same office space would entail charges reaching $10,800 ($900 monthly rental) in one year. This is because the $500 monthly rental is compounded by $150 in cleaning/security fees and $250 in pantry/meeting room fees, which increases the monthly rental to $900.
For a flat, the total rate for one year reaches to $9,400 due to the fact that the $300 monthly rental increases to $1,700 in the first month due to the addition of $200 fee for cleaning, $200 charge for security, and $1,000 for pantry/meeting room. A $700 monthly rental is charged in the second to the 12th month of the rental contract. For more detailed comparison, please refer to the graph and table at the bottom.
While one may have doubts whether TSE offers the best services considering that it offers the cheapest rates in the long run, we have some testimonials here that can attest to the company’s topnotch service to its clients and customers through the years.
“It’s a pleasure to work here. I am satisfied with the office environment. It is a modern, comfortable, and clean office that makes hard work for me and other staff easier,” said TOS TOV marketing staff Hong Sokunraksmey.
For Okoone CEO Julien Meunier, the experience with TSE has been remarkable.
“The Office #106 has proved to be a valuable asset to our company over the last year, providing a convenient and comfortable working environment for our employees and reinforcing our corporate image of an innovative digital agency,” he said.
“With continuously expanding operations, we are often in search of clean, modern and well-designed office spaces with staff amenities and proper building management, and enough flexibility to accommodate anticipated growth: The Office has proved to meet all these criteria. I would definitely recommend The Office to any company looking for high-quality and well-managed office facilities in Phnom Penh,” Mr. Meunier added.
Other companies that have rented office space from TSE include the job search website PHNOMLIST, One Degree, Prasat Study Abroad Consultancy (PSAC), and The Furniture Express (TFE).
Obviously, as the findings above show, TSE offers the best rates for office rental around town. No doubt about it.
Comparison of TSE rental rates with that of its competitors