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Ease of Doing Business – How conducive is the regulatory environment to starting and operating a business. Source: The World Bank, Doing Business – 2018
Labor Cost – Wages for “Knowledge Workers”. Source: Trading Economics.com, OECD Wage Report, Colliers International
Taxes – Favorability of taxation policies to business. Source: The World Bank, Doing Business – 2018
Tenant Favorable – Assessment of the real estate market condition. Source: Colliers International
Quadrant Legend: Green = FavorableYellow = NeutralRed = Less Favorable
Typical Loss Factor
5 - 10%
From rentable to useable square meters
Loss Factor Notes:
Loss factor is around 5 - 10 % of the gross floor area. Normally 5-10% of total lease space, Common Area, AHU, Lift, Fire Exit
Landlord Concessions
Fit-Out Concession
The Landlord typically does not provide a contribution or concession to fit-out as a part of the lease transaction.
Rent-Free Period
The Landlord typically provides a contribution or concession in the form of a rent-free period.
Standard Range of Rent-Free Months
1mo.-3mo.
Typical number of rent-free months.
Payment of Fees/Commissions
The Landlord typically pays the tenant rep broker’s fee.
Lease Provisions
Lease Term
3yrs.-3yrs.
Typical lease term in years.
Lease Term Notes:
The typical lease term is 3 years. Longer leases need to be registered and a tax is payable. Therefore, longer leases tend to be in multiples of 3 years (i.e., 3 + 3 + 3).
Or, if the tenant wants to register the lease, the maximum term is 30 years, but those are very rare in the market.
Operating Expenses & Service Charges Included
Quoted market rent typically does not include operating expenses (service charges). There are additional charges that apply to leasing space.
Service Charge Notes:
Additional charges are applicable for the building maintenance.
Based on consumption basis.
Lease Fundamentals: The following apply to both office and industrial leases.
Lease Execution Requirements:
Typical upfront requirements
None for strong credit tenants
Upfront rental payment
Security deposit
Corporate guarantee
Not Applicable
Negotiated Subletting/Assignment
The tenant's right to sublease or assign the space typically is NOT negotiated in the lease agreement. Landlord Consent: Typically, the landlord's written consent IS still required.
Negotiated Subletting/Assignment Notes:
Unless requested for subsidiaries.
Statutory Subletting/Assignment
This is NOT a statutory right.
Blend & Extend Strategies
Typically, a tenant can take advantage of "blend & extend" ("forward renewal", "early renewal", etc.) strategies when the appropriate market conditions exist.
Statutory Early Termination
This IS a statutory termination right.
Negotiated Early Termination
It IS typical for tenants to be able to negotiate an early termination right in the lease agreement.
Typical Cost to Terminate Early
$
Typical cost to terminate early.
Early Termination Notes:
Not very common.
Workplace
Regional Office Space
8.4sm-14sm
Typical Square Meters per employee (includes office square footage for employees and contractors).
Regional HQ Office Space
8.4sm-14sm
Typical Square Meters per employee (includes office square footage for employees and contractors).
Bangkok market is typical.
Desk Sharing
Desk-sharing is a common practice in the market.
Urbanization of the workforce is: Equal to several other considerations driving location decisions
Industrial Occupier Market Condition
1,1,1,1
Ease of Doing Business – How conducive is the regulatory environment to starting and operating a business. Source: The World Bank, Doing Business – 2018
Labor Cost – Wages for “Knowledge Workers”. Source: Trading Economics.com, OECD Wage Report, Colliers International
Taxes – Favorability of taxation policies to business. Source: The World Bank, Doing Business – 2018
Tenant Favorable – Assessment of the real estate market condition. Source: Colliers International
Quadrant Legend: Green = FavorableYellow = NeutralRed = Less Favorable
Landlord Concessions
Rent-Free Period
The Landlord typically provides a contribution or concession in the form of a rent-free period.
Standard Range of Rent-Free Months
1mo.-3mo.
Typical number of rent-free months.
Payment of Fees/Commissions
The Landlord typically pays the tenant rep broker’s fee.
Lease Provisions
Lease Term
3yrs.-3yrs.
Typical lease term in years.
Lease Term Notes:
The typical lease term is 3 years. Longer leases need to be registered and a tax is payable. Therefore, longer leases tend to be in multiples of 3 years (i.e., 3 + 3 + 3).
Or, if the tenant wants to register the lease, the maximum term is 30 years, but those are very rare in the market.
Operating Expenses & Service Charges Included
Quoted market rent typically does not include operating expenses (service charges). There are additional charges that apply to leasing space.
Service Charge Notes:
Additional charges are applicable for the building maintenance.
Based on consumption basis.
Lease Fundamentals: The following apply to both office and industrial leases.
Lease Execution Requirements:
Typical upfront requirements
None for strong credit tenants
Upfront rental payment
Security deposit
Corporate guarantee
Not Applicable
Negotiated Subletting/Assignment
The tenant's right to sublease or assign the space typically is NOT negotiated in the lease agreement. Landlord Consent: Typically, the landlord's written consent IS still required.
Negotiated Subletting/Assignment Notes:
Unless requested for subsidiaries.
Statutory Subletting/Assignment
This is NOT a statutory right.
Blend & Extend Strategies
Typically, a tenant can take advantage of "blend & extend" ("forward renewal", "early renewal", etc.) strategies when the appropriate market conditions exist.
Statutory Early Termination
This IS a statutory termination right.
Negotiated Early Termination
It IS typical for tenants to be able to negotiate an early termination right in the lease agreement.
Typical Cost to Terminate Early
$14
Typical cost to terminate early.
Early Termination Notes:
Not very common.
Section 1. Fit Cost Data
Total Fit-Out Cost
$40/sm-$55/sm
Class A Office
$25/sm-$35/sm
Class B Office
$20/sm-$25/sm
Flex Office / Warehouse
$15/sm-$20/sm
Warehouse
Total Fit-Out Cost Notes:
Assuming all these are fitouts only and do not include improvements to basebuilding. Also, these are average costs and would vary based on actual requirement.
Furniture Cost
$5/sm-$7/sm
Class A Office
$4/sm-$5/sm
Class B Office
$3/sm
Flex Office / Warehouse
$2/sm
Warehouse
Construction to Move-in Cycle Time
12wks-16wks
Class A Office
10wks-14wks
Class B Office
8wks-12wks
Flex Office / Warehouse
6wks-9wks
Flex Office / Warehouse
Cycle Cost Notes:
Cycle time depends on various factors such as requirement of government sanctions, imported goods, location, design and specifications and method of contracting. It cannot be generalised. This is rough order estimate for 20k sqft and may change based on actual project.
Section 2. Scope of Work Description
Phase 1: Services Before and During the Transaction
Review the LOI and work letter portion of the Lease to ensure that the clients interests are protected during the build-out of the project.
Not typically included at all, but available for an additional fee.
Advise Colliers broker and client on project issues and their resolution as they occur.
Not typically included at all, but available for an additional fee.
Participate in building tours, if requested, to evaluate building systems and other cost-related observations and prepare a building due diligence report
Not typically included at all, but available for an additional fee.
Develop high-level project estimate and timeline based on test fit and Client standards
Not typically included at all, but available for an additional fee.
Schedule and chair Schematic Drawings and Design Development Drawings review meetings/conference calls
Not typically included at all, but available for an additional fee.
Phase 2: Service Before and During the Design Process
Develop preliminary project budget and schedule.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Develop the RFP for selection of a space planner/architect and any other consultants identified and required
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Analyze, compare and evaluate responses to the RFP.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Orchestrate the space planner/architect interview process.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Negotiate, on behalf of the client, professional services agreements with the space planner/architect and other consultants.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Review architect’s final Program of Requirements.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Monitor the design team’s schedule of deadlines and deliverables. Coordinate meetings with the design team and the client. Manage the design process on behalf of the client.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Review and recommend payment of the invoices for services. Submit invoices for payment to landlord or client and prepare monthly reports of project costs versus project budget.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Negotiate all client-vendor contractors (IT, AV, Security/Access Control, Signage, High Density Filing) on behalf of client.
Not typically included at all, but available for an additional fee.
Coordinate with either Architect or General Contractor in permitting process
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Schedule and chair weekly design review meetings/conference calls
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Other Value-Add Services: Test fits (including Look & Feel) - Cost Estimates - Schedule/timing/phasing scenarios - Floor plan, core and circulation efficiency ratios(GIA vs NIA) (NOA vs NIA) - Technical due diligence/Assessments - We may pack everything into a Feasibility Study or proposed them separately depending on the situation.
Not typically included at all, but available for an additional fee.
Phase 2 Notes:
Develop the RFP for selection of a space planner/architect and any other consultants identified and required; analyze, compare and evaluate responses to the RFP; orchestrate the space planner/architect interview process; and negotiate, on behalf of the client, professional services agreements with the space planner/architect and other consultants: not always asked for though we can provide as part of service.
Negotiate all client-vendor contractors (IT, AV, Security/Access Control, Signage, High Density Filing) on behalf of client: usually Client Scope.
Other value-add services (exclusions): Floor plan, core and circulation efficiency ratios, Technical DD, Feasibility Studies - All of the above would come at an additional cost.
Phase 3: Services Before Construction
Liaise with the Landlord’s Representative.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Prequalify a list of general contractors to be interviewed (consult lease to confirm any Landlord required GCs).
Typically included in "Project Management" scope of work.
Develop the RFP, including Landlord and/or Lease required documents, for selection of a general contractor.
Typically included in "Project Management" scope of work.
Analyze, level, and evaluate the responses to RFP.
Typically included in "Project Management" scope of work.
Orchestrate general contractor interview process and prepare evaluation scorecard.
Typically included in "Project Management" scope of work.
Review all proposed subcontractors and monitor the general contractor’s subcontractor bid process to ensure integrity of the process and quality of the workmanship.
Not typically included at all, but available for an additional fee.
Monitor the general contractor’s schedule of deadlines and deliverables. Coordinate meetings between the design team, general contractor, client and appropriate vendors.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Negotiate, on client's behalf, the General Contractor agreement for Client approval
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Schedule and coordinate Architect's 90% Construction Drawings review
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Develop Project Cost Summary + Invoice Tracker and update weekly
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Phase 3 Notes:
Prequalify a list of general contractors to be interviewed; develop the RFP, including Landlord and/or Lease required documents, for selection of a general contractor; analyze, level, and evaluate the responses to RFP; and orchestrate general contractor interview process and prepare evaluation scorecard: required by clients sometimes in D&B models.
Phase 4: Services During Construction
Coordinate with the Landlord’s Representative.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Conduct weekly construction meetings to assess progress, quality and conformance with the Contract Documents and distribute minutes of meetings.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Monitor the general contractor’s schedule.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Monitor the construction budget.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Review, and recommend for payment, the contractor’s Applications for Payment.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Monitor all project documentation.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Act at all times as client’s liaison to vendors contracted directly by Client (IT, AV, Security/Access Control, Signage).
Typically included in "Project Management" scope of work.
Oversee the punch list process to ensure acceptable completion of all items.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Close out all consultant, contractor and vendor contracts.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Submit General Contractor, vendor, and consultant invoices to Landlord for reimbursement per the Lease Workletter
Not available / not a service that can be offered.
Review and recommend for payment all General Contractor, vendor, and consultant invoices; submit to Client for approval
Typically included in "Project Management" scope of work.
Deliver close-out documents, as specified in the Lease, to Client
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Coordinate value/engineering process, if required.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Phase 4 Notes:
Act at all times as client’s liaison to vendors contracted directly by Client (IT, AV, Security/Access Control, Signage: Required by clients sometimes in D&B models.
Submit General Contractor, vendor, and consultant invoices to Landlord for reimbursement per the Lease Workletter: Doesn't apply in most APAC locations.
Review and recommend for payment all General Contractor, vendor, and consultant invoices; submit to Client for approval: Required by clients sometimes in D&B models.
Additional Services: Services During Relocation
Develop RFP for moving companies, evaluate responses and recommend selection of moving company or identify, interview and review proposal for services from relocation consultants.
Not typically included at all, but available for an additional fee.
Represent Client in development of move strategy.
Not typically included at all, but available for an additional fee.
Monitor development of move activity checklist.
Not typically included at all, but available for an additional fee.
Represent client on site during move process.
Not typically included at all, but available for an additional fee.
Additional Services: Project Management Services Related to Furniture/Workstation Procurement
Conduct bid process for all furniture (workstations, case goods, seating, filing) purchases specified by the architect and/or client.
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Conduct bid process for refurbishment of existing furniture and/or workstations.
Not typically included at all, but available for an additional fee.
Evaluate bids and negotiate purchase order with manufacturer(s).
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Negotiate national buying contract with select furniture dealerships, using Colliers International purchasing power
Typically included in "Project Management" scope of work.
Typically included in “Design/Build” scope of work.
Business Climate Business Climate data provided in partnership with Hickey & Associates. Rankings reported on a scale of 1 (least favorable) to 10 (most favorable). Please refer to the full report Explore 2017 for additional details.
Incentives and Labor Market
6, 46/10
Incentives Value potential, diversity/number of programs
1, 91/10
Job Saturation Competition for workers
2, 82/10
Wage Inflation Rise in wages (past 10 years, local currency)
Educational Attainment
5, 55/10
HS Ed Eq Proportion of population attaining this level
5, 55/10
University Ed Proportion of population attaining this level
5, 55/10
Overall Composite average of HS Ed Eq & University
Composite
4, 64/10
Additive sum of incentives, saturation, overall ed attainment, and wage inflation
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